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Selling Calls and Put Options

Selling Calls and Put Options For Premium

Introduction to Options Every options contract has two sides–the buyer and the writer. You’re likely familiar with how buying an option works. You buy the right, but not the obligation to buy or sell a stock by a specified date, at a specified price. But someone has to sell that right, and that’s the option […]

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Long Put Option

Long Put Option Strategy for Beginners

  While day trading stocks can potentially lead to big profits, options are an ideal way to control a large chunk of shares without having to put up the funds necessary to own stocks of bigger companies and can actually help protect or hedge your stock investments. This article will prepare you to effectively use […]

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Exercising Options

Exercising Options: Everything You Need to Know

  You may have heard that trading stock options can be worth a lot of money when used correctly, and it is certainly true. But do you really know how stock options work? Or what a stock option is? Do you know what it mean to exercise options? Do you know the difference between exercising calls […]

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Options Pricing

Options Pricing – How it Works

  Figuring out the value of a stock or bond is a pretty straightforward problem. For stocks, the price of the shares is directly tied to the underlying value of the company. Successful companies that project strong forward sales growth will be rewarded with a high valuation and rising share prices. For companies bogged down […]

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Index Options vs Stock Options

Index Options vs Stock Options Explained For Beginners

  Many novice options traders are initially confused by the difference between the options on cash indices like SPX and the options traded on stocks and ETFs like AAPL or SPY. After all, you can’t trade indices like SPX on the stock market. It’s just an index!  So let’s settle a few differences. Firstly, why […]

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What Are Stock Options

What Are Stock Options?

  What Are Stock Options? Isn’t it nice having options?  If you’re hungry, you have a wide variety of restaurants to choose from. If you want to buy a car, you have different makers producing different models with an endless array of upgrades. It’s true that too many choices can sometimes cause paralysis by analysis, […]

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What Happens to Options During a Stock Split

What Happens to Options During a Stock Split?

  If you have noticed that the number of option contracts you own on a stock that has recently split has changed, don’t panic. When a stock splits, due to a corporate action, several components of an option contract can change to make you whole. Recently both Apple and Tesla announced stock splits which have […]

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Bermuda Option

Bermuda Option: What they are and How they Work

The Bermuda Option is becoming more popular so read on to see how it works and why it’s different than more conventional types of options. What are Options? An option is a contract that gives an investor the right, but not the obligation, to buy or sell an underlying financial instrument like a stock, exchange-traded […]

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