A cash secured put is created when a put option is sold to open at the same time as capital in an account is designated to buy the underlying stock at the strike price if the put expires in-... Read more
What is a leap? LEAPS is an acronym for options contracts called a Long Term Equity Anticipation Security. Leaps are derivatives with a long term expiration date that have prices that fluctu... Read more
A naked put option calculator allows an option trader to key in the following data points: Stock Price. Put option strike price. Naked put option premium credit received. Days until expirati... Read more
A covered call calculator allows an investor to enter in: Stock price Strike price Call premium Days until expiration Margin interest rate You can then see the analysis of the parameters of... Read more
To make money with option contracts a trader must be right about many factors based on both the underlying stock and the option contract chosen to buy or sell short. Here are the top ten co... Read more
Theta Gang is the slang for being a member of a group of other option writers with the mindset that selling premium is a preferred strategy than buying options. They are short Theta by selli... Read more
Maximum pain for an options chain can show the option trader the expiration date price that will cause the option buyers to lose the most money. The max pain level is the strike price with t... Read more
The bearish butterfly option play, (not to be confused with the bearish butterfly chart pattern) is an adjusted butterfly option spread which is a neutral options trading play that is struct... Read more
Implied volatility or IV crush are descriptions for when an options vega premium dropped dramatically out of its pricing. This usually happens after a major event has passed for the underlyi... Read more
An online options profit calculator can help with the math of understanding the dynamics of an option play from opening it until it is closed and whether it is profitable. An option play ca... Read more
