Options

What is a Gamma Squeeze & How can it Affect Your Trading?

What is a Gamma Squeeze & How can it Affect Your Trading?

Investing's "squeeze" occurs when the stock price of a company moves rapidly. Whenever this happens, investors may exhibit "squeezed" and seem to change their stock positions in ways they hadn't intended. These changes usually cause stock prices to rise. Gamma...

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Selling Put Options – How does it work? Is it worth it?

Selling Put Options – How does it work? Is it worth it?

Buying an awesome company doesn't have to be based on the market's price. Instead, you could specify your price and receive payment when the stock dips to the level. In this article, let's focus on Selling Put Options. You can do that by trading put options. Put...

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Put Options – How does it work? Should you Exercise it?

Put Options – How does it work? Should you Exercise it?

Definition of Put Options A put option is jargon, which is commonly used in the trading shares at stock markets. Anyone who holds a put option has the right to trade the shares of equity, at a given price. These options also carry an expiration date, so anyone who...

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Put Credit Spread : Explained in Simple Terms

Put Credit Spread : Explained in Simple Terms

Put Credit Spread, or a bull put, is an strategy of options. The investors use the strategy when he is expecting a reasonable rise in the price of any asset. There are 2 put options for forming a range. It consists of a low strike price and also a high strike price....

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Day Trading Options: Is it Worth it? How to Do it?

Day Trading Options: Is it Worth it? How to Do it?

Day trading options has become very popular these days. However, it wasn't as popular as today and wasn't part of the past's conventional intraday strategies. Conversely, today's investors are more involved in day trading. So, what is the reason for such growing...

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Max Pain Theory & Calculator – Definition, how it works

Max Pain Theory & Calculator – Definition, how it works

When there are most open options contracts, there is a strike price for Max pain. We also call it max pain price or Max Pain Theory. The options contracts involve puts and calls. It is the price at which a stock can cause financial losses at expiration to a large...

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Put to Call Ratio: Definition, Usage, & Strategy

Put to Call Ratio: Definition, Usage, & Strategy

The put to call ratio (PCR) is a very important measure for options traders. It helps traders determine the overall mood of a market. So, if you are interested in learning all about the put to call ratio, then you are on the right platform.  Because we are going...

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Long Strangle: Learn this Option Strategy

A long strangle is an options trading strategy that ensures higher profit potential and is comparatively cheaper than other option strategies. If you want to learn how this strategy works, what are its benefits, and the risks associated with it, then you are on the...

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Strip Option Strategy – Understand it All

The strip option strategy is a popular option strategy among options traders. Traders use this strategy when they are bearish on the stock and anticipate higher volatility in the next few days or weeks. This strategy is actually a variation of a long straddle options...

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Bull Call Ratio Backspread Strategy – Detailed Guide

A bull call ratio backspread strategy is among the most popular option trading strategies that offer unlimited profit potential. It is a bullish, risk-defined, and multi-leg strategy. As it is a bullish strategy, traders with a bullish outlook on the underlying...

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LEAP Options – Definition & How to Buy it?

Long-term Equity Anticipation Options or LEAP options are options contracts with long-term expiration dates. Their expiration duration is one or more than a year. Long expiration duration is the only difference between LEAPs and other types of options contracts. That...

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Covered Calls – How to Write Them Like a Pro

Writing covered calls means selling someone else the right to buy an underlying security you already own. The contract includes a specific price and a timeframe as well. In addition, you need to own at least 100 shares of the underlying security to write a covered...

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Options Spread: Which Will Get You the Best Returns

An optiosn spread is among the most popular options trading strategies. It involves buying and selling multiple options contracts of the same type and having the same underlying security. Whereas, the same type means you either buy and sell multiple put options or...

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Theta: Useful Option Greek to Know Time to Expiration

Theta is one of the most useful options Greeks measures. It measures the rate at which the value of an option falls as the expiry date approaches. In other words, this option Greek measure evaluates the value or price of options with the passage of time.  If you...

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Cost of Carry: Definition, Calculation & Usage

Cost of Carry (CoC) refers to the cost traders have to bear for holding a position in the market. It is a crucial aspect of trading in almost all types of markets. As you know, holding an investment position in any market comes with a cost. For instance, market costs...

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Expiry in Derivatives: How does expiration work?

Expiry in derivatives refers to the day on which a derivative contract expires. All derivatives contracts are based on any underlying security run for a particular time period. They all expire at the end of that period and new ones are issued after that. Furthermore,...

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Call Option Payoff: What is it? How can this benefit you?

Call option payoff means the profit or loss a trader makes from buying or selling an option. If you want to know all about this key aspect of options trading, then you are on the right platform. In this article, we are going to explain the call option payoff in the...

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Neutral Spread: What is it?

Neutral spread options trading strategies enable traders to make profits even when the price of the underlying security neither rises nor falls. Traders use these strategies when they don't expect prices to move significantly in either direction. Therefore, it is...

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Vega: Understand this Options Greek

Vega is a major Option Greek measure that tells traders about the sensitivity of the option's price to change in volatility. Options trading is challenging because it entails the accurate prediction of what will happen to the value of options in the future. AND...

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Short Straddle: Fully Understand this Option Strategy

A short straddle is an options trading strategy that works perfectly when the expected volatility in the market is limited. You can use this strategy when you expect little movement in the price of the underlying security. However, this is a risky strategy and should...

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Are Candlestick Patterns Reliable

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