Options are a market of derivatives that gives traders the right to buy or sell shares of stock over a set time period at a specific strike price for the cost of the contract. The options market is a zero sum game where there is a seller and buyer for every contract until it is […]
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Selling put options is one way to get paid to buy the stock you want at the price you are waiting on. How does selling put options work? The way to use this strategy to buy stocks for less is to sell put options at strike prices at the lower level on a chart where
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Here is a list of the best options trading books based on Amazon sales, reviews, ratings and author popularity. It is important to have a full understanding of the options market and pricing model before diving into options trading with real money. Options are derivative contracts and complex instruments where time, strike price, and volatility are
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Rolling options is the process of moving from one call strike price and expiration on a specific stock to a different call of a different strike price and expiration on the same stock. It entails exiting the current option contract and then entering a new position immediately after or at the same time . The
Instead of searching for an options play structure every time you come across a potential option trade you want to make you can now simply refer to the below guides created by Gavin McMaster at OptionsTradingIQ.com you can also following Gav on Twitter at @OptionTradinIQ. Options traders at all trading levels can find having these
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Option contracts are different than stock shares in the way they are created, traded, and closed. There are two different types of selling in options trading: sell to open vs sell to close. An options trader will sell to open a new option contract that they want to be short. This is also called writing
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A synthetic share of a stock is created by buying and selling stock options to simulate an options play that moves the same way that holding shares in the stock would move without the same amount of capital needed to buy the same amount of shares. A synthetic long stock position is created by buying
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A diagonal spread options play is a modified calendar spread that is built with different strike prices. It is opened by entering into a long and short position in two options of the same type at the same time. An option trader can use two call options or two put options but they must have
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This is a guest post from Gavin McMaster @OptiontradinIQ Searching for income has become a challenge. Bonds have been a traditional conservative income stream for decades. Yet, bond yields are now trading at historic lows. This has led some investors and advisors to jump into lower credit “junk” bonds simply to generate any income –
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The jade lizard is an option play that is created by opening a bearish vertical spread using call options and adding a put option sold at a strike price lower than the call spread strike prices. Using one underlying stock with the same expiration date, the jade lizard strategy buys a call option at one
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