Call options are in the money when the underlying stock that it is written on has a price higher than a the call option strike price. A call option can be used to call away a stock at the pr... Read more
The delta of a stock is always 1.00 because delta is the variance of movement of a stock versus an option contract. The delta of an option is the magnitude of the move in the underlier that... Read more
OTM is short for out of the money in options trading. This refers to the moneyness of an option contract, the relationship of the current price of the underlying asset to the strike price of... Read more
What is delta in options? The delta of an option is part of the option Greek pricing model and prices in the magnitude of the move in the underlier that the option will capture based on the... Read more
A “squeeze” is price action that is so strong in one direction that it forces traders and investors to change their market positions based on moves going too far against them. Th... 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
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
Here is an Option Greeks cheat sheet you can use as a quick reference guide. For those not familiar with option pricing it can also be an educational guide as well. For more about option Gr... Read more
If you are interested in trading options the before you start you need a good understanding of what determines the contract price. Understanding what factors determine an options value and h... Read more
A put option contract gives the buyer of the contract the right to sell the underlying asset to the seller of the option at the strike price on the day of expiration. The put buyer has the r... Read more
