Stock Option Trading Education
- 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
- Front Month Option Expiration: The nearest term stock option is referred to as the front month. In a four-week expiration cycle,... 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
- Synthetic Put Position: Option traders often construct synthetic put positions to hedge their short stock positions. When... 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
- Options Listed on Multiple Exchanges: Multi-Listed Stock Optionsare stock that have options that are listed on more than one exchange.... read more
- Option Strategy: Options are one of the most dynamic investment vehicles available to traders and investors. Option... read more
- Back Month Options Expiration : Back month stock options have more than one month before they expire. They are slightly less... 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 Vega: An Option Vega measures the change in the price of a stock option relative to a 1% change in... 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
- Butterfly Option Spreads: In a Butterfly Spreadstrategy, all of the expiration months are the same. A trader buys a call... 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
- Out of the Money (OTM) Options: A call option with a strike price that is much greater than the current stock price is considered... read more
- Option Ask Definition: An option ask is the price an option seller wants to receive for the option. If the option is... read more
