The second-order Greeks are a bit more complicated. Rather than looking at the impact on the option itself, they measure how a change in…
What Are Options Greeks? Financial derivatives can be volatile and sensitive to factors such as changes in the pricing of the underlying asset. Each…
What is a Long Strangle? The long strangle is quite similar to the popular straddle spread, the only difference is that the straddle involves…
The Costless Collar Explained In Detail Stock investors are exposed to downturns in share prices and often use options to protect against major losses.…
‘Moneyness’ considers the strike price of an option versus the current stock price. If exercising the option produces a ‘better’ result than if…
Let’s look at a couple of examples: Out Of The Money Call Option Suppose a trader owns a 140 IBM Call Dec 20 call…
Options Spreads Combinations Explained For example a trader may sell one AAPL 170 call and buy one AAPL 160 call, a type of call…
(We have similar post on the opposite trade: Buy To Open vs Buy To Close) What Is Sell to Open In Options Trading?…
It’s important to know what these terms mean. In addition, you should know under what circumstances you should buy to open and when you…