Tag: Options

Iron Butterfly Options

How the Iron Butterfly Options Strategy Works

Iron Butterfly Options Strategy The Iron Butterfly options strategy, also known as the Ironfly, falls into a category of options strategies known as Option Income Strategies. Option income strategies focus on time decay and collecting premiums over the decay. Specifically, the Iron Butterfly is a type of income strategy known as a credit spread. Credit […]

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Mini options

Mini Options: Great For Trading Higher Priced Stocks

What Are Mini Options? Mini options are an options class that carries 10 shares of an underlying stock or exchange-traded funds, rather than 100 shares as is the case with traditional options. U.S. options exchanges introduced mini options in March 2013 on five popular expensive securities including Google and Apple stocks. Every listed mini option […]

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Put Call Parity

Put-Call Parity Explained in Depth

Whether you are a stock trader, a bond trader, or a forex trader, your ultimate goal is to earn money with minimum risk. For options traders, one of the most important principles you need to understand is the put call parity. In this article, we will be focusing on the nuts and bolts of this […]

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best options trading platforms

Best Options Trading Platforms 2020

In the stock trading world, speculators buy stocks at a lower price in the hope of selling them at a higher price later in order to make a profit. Sadly, a buyer cannot know what the market price of a stock will be when the time comes to dumb it. This is why many investors […]

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Options vs Futures

Options vs. Futures: What’s The Difference?

Options and futures contracts are both derivatives, created mostly for hedging purposes. In practice, their applications are quite different though. The key difference between them is that futures obligate each party to buy or sell, while options give the holder the right (not the obligation) to buy or sell. Options Example Jim thinks he might […]

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option strategies

7 Option Trading Strategies Every Trader Should Know

Trading options has exploded in popularity over the last couple of decades, and option trading in particular has become a major force in contemporary finance. The ability to create sophisticated and nuanced trading positions using options and other derivatives is incomparable when contrasted with traditional securities trading. Out of the many advanced trading techniques used […]

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