Options Theta Explained Options Theta Math It's not necessary to understand the math behind theta (please feel free to go to the next section
Options Delta Explained For example, should a stock option price increase in price by 0.5c with a 1c increase in the underlying stock
The second-order Greeks are a bit more complicated. Rather than looking at the impact on the option itself, they measure how a
What Are Options Greeks? Financial derivatives can be volatile and sensitive to factors such as changes in the pricing of the underlying asset.
What is a Long Strangle? The long strangle is quite similar to the popular straddle spread, the only difference is that the straddle
The Costless Collar Explained In Detail Stock investors are exposed to downturns in share prices and often use options to protect against major
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 option allowing
‘Moneyness’ considers the strike price of an option versus the current stock price. If exercising the option produces a ‘better’ result than if
Options Spreads Combinations Explained For example a trader may sell one AAPL 170 call and buy one AAPL 160 call, a type of
It’s important to know what these terms mean. In addition, you should know under what circumstances you should buy to open and
