Stock Option Trading Education
- Types of Option Spreads: An option spread is created when a trader simultaneously buys and sells options with different... read more
- Front Month Option Expiration: The nearest term stock option is referred to as the front month. In a four-week expiration cycle,... read more
- Intrinsic Value and Option Trading: For in-the-money call options, intrinsic value is the difference between the stock price and the... read more
- Accelerated Time Decay: Accelerated Time Decay refers to options that have less than a month to maturity decay at an... read more
- Options in the Money: A call option is where the strike price is lower than the current price of the stock is considered... read more
- Iron Condors: An iron condor is typically a non-directional option spread where the trader sells an out of the... read more
- Option Bid Definition: An option bid is the price an option buyer is willing to pay for the option. If the stock option... read more
- Option Premium Pricing and Intrinsive Values: An option premium is the price of the stock option. It is comprised of intrinsic value and time... read more
- Definition of Option Delta: An option delta measures the change in the price of a stock option relative to the change in the... read more
- 10 up Option Market Definition: Ten-up Option Market - Market Makers provide liquidity and they are members of the exchange. They... read more
- Married Puts Options Strategy: In a married puts option strategy, the investor owns shares of stock and purchases an equal number... read more
- Back Month Options Expiration : Back month stock options have more than one month before they expire. They are slightly less... read more
- Option Pricing Models - Black Scholes: The Black-Scholes Option Pricing Model is a financial model thatl was developed in 1973 by Fisher... read more
- Definition of Option Theta: An Option Theta measures the rate of decline in a stock option due to the passage of time. Theta... read more
- : An option contract gives the buyer of the option the right, but not the obligation to buy (call)... read more
