Stock Option Trading Education
- Option Bid/Ask Spreads and Liquidity: The Option Bid/Ask Spread is the difference between the stock option bid price and the ask price.... read more
- Definition of Option Gamma: An Option Gamma measures the change in Delta for every one dollar change in the underlying price... read more
- Option Strategy: Options are one of the most dynamic investment vehicles available to traders and investors. Option... read more
- Iron Condors: An iron condor is typically a non-directional option spread where the trader sells an out of the... 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
- 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 Delta: An option delta measures the change in the price of a stock option relative to the change in the... read more
- Synthetic Put Position: Option traders often construct synthetic put positions to hedge their short stock positions. When... read more
- : An option contract gives the buyer of the option the right, but not the obligation to buy (call)... read more
- Types of Option Spreads: An option spread is created when a trader simultaneously buys and sells options with different... read more
- Derivatives & Underlying Stock Option Value: A derivative in the context of finance is a contract whose value is dependent on another... 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
- Options At the Money: When the stock price is the same as the strike price an option is considered at the money. The... read more
- Option Exercise Price: An option exercise price is the price level where the option starts to take on intrinsic value. It... read more
- Diagonal Option Spread: A Diagonal Spread is an option spread where the trader buys a longer-term option and sells a... read more
