Option
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Understanding Foreign Exchange Options: A Comprehensive Guide
A foreign exchange option is a contract that provides a purchaser the right, but not the obligation, to buy or sell a given amount of a foreign currency at a set price at a set date in the futur
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Understanding Basket Options: A Comprehensive Guide
Basket options are contracts based on the weighted value of a basket of goods. Typically, these goods are commodities or currencies. The contract is set up to represent the entire sum of values
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Incentive Stock Options (ISOs): A Comprehensive Overview
Incentive stock options, or ISOs, are a type of benefit that many companies offer their employees. This type of stock option program provides employees with tax advantages and several benefits.
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Long Straddle vs. Short Straddle: Understanding the Options Strategies
Long straddles and short straddles are both strategies to profit from arranging two options contracts--a put and a call--on the same security with the same strike date. This is the only area whe
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Monte Carlo Options Method: Analyzing Complex Investments
The Monte Carlo options method is a means to analyze highly volatile or complex investments by running models of various potential outcomes. The method uses inputs of different factors that can
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Understanding Timer Call Options: Fixed Volatility Explained
A timer call option is a rare and infrequently used model in which volatility is fixed instead of implied in an options contract. Typically, the implied volatility of a security is used to gener
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LEAPS Options: A Comprehensive Guide to Long-Term Equity Strategies
LEAPS options are derivatives that investors use to reduce their risk in their portfolio. They are also used to speculate by investors and can turn large returns. Long term equity anticipation s
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Understanding Incentive Stock Options (ISOs): Requirements & Tax Benefits
An incentive stock option is a type of stock option that is provided by companies to their employees. The tax provides a tax benefit for the employee. There are specific, qualifying requirements
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Understanding FLEX Options: Flexible Exchange-Traded Options Explained
Flexible exchange traded options (FLEX options) are option contracts without set terms. The customer and broker independently negotiate the terms of the contract, and they have the ability to ch
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Understanding the Risks & Rewards of Cheap Out-of-the-Money Options
Cheap out of the money options carry a high amount of risk. Yet being cheap, these options also have a high potential for reward. In order for these options to become profitable, the underlying
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SPOT Options: Understanding Automated Option Exercise
Single Payment Options Trading (SPOT) options are unique because they automatically exercise an option on behalf of a trader if a certain scenario occurs. With a traditional options contract, th
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Options Hedging: A Beginner's Guide to Risk Management
One common and effective method used to limit risks in equity investments is to hedge with options, called hedging options. In some cases, options are doubly effective by limiting risk, while pr
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Options Collar Strategy: Protecting Assets & Investments
The protective collar is an options trading strategy used by many money managers and professional investors. The collar for options can be defined as a position that protects an asset by purchas
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Understanding Equity Derivatives: A Comprehensive Guide
Equity derivatives are a type of investment tool that is commonly used in order to gain exposure to stock movement without actually owning the stock. The value of these derivatives is attached t
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Understanding Option Premiums: A Comprehensive Guide
The option premium is the amount of money that an investor pays in order to secure a contract. When an individual investor purchases an option, it gives them the right to buy or sell a specific
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Option Agreement: Definition, Terms & How It Works
An option agreement is a type of agreement between two parties that specifies the terms of an option contract. With this type of agreement, one person will have the option to buy a piece of prop
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Understanding Ordinary Annuities: Present Value & Future Payments
An ordinary annuity, also called an immediate annuity, is an investment tool in which an individual (the annuitant) makes a single payment, at a certain time, in exchange for a series of smal
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Double Calendar Options Strategy: Low-Volatility Trading
Are you an options trrader looking for a strategy designed for a lower-volatility environment where the underlying price action gravitates toward either of two different strike prices? The double cale
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Understanding Derivatives: Options on Futures vs. Equity Options Explained
Tax audit. Crash. Emergency liquidation. Lets face it—some financial terms are scary, perhaps for good reason. But heres a term that may sound scarier than it is: derivatives.A derivative product is s
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Understanding and Adjusting Stock Option Collars
The stock market fluctuates with new highs and new lows. So protective puts and other option strategies designed to defend against downside moves may not always be foremost in every investor’s mind. C
Option
- Understanding Put Options: A Beginner's Guide
- Understanding Traditional Option Pricing Models: Black-Scholes & Monte Carlo
- Understanding Call Options: A Beginner's Guide to Successful Trading
- Understanding Bond Tranches: Risk, Reward, and Investment
- Understanding Option Expiration Dates: A Crucial Guide
- Covered Calls: A Beginner's Guide to Generating Income from Stocks
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Understanding Bankruptcy: Is It the Right Financial Solution for You?The mere thought of filing for bankruptcy is enough to make anyone nervous. But in some cases, it really can be the best option for your financial situation. Even though it stays as a negative item ...
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Understanding Average Traded Price (ATP) in Technical AnalysisStocks are among the most volatile of all financial assets. Whenever major news about the economy or a specific corporation is revealed, a stock's price may move by several percentage points withi...
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Understanding Account Designation: Who Inherits Your Bank Accounts?Account designation in regards to bank accounts deals with beneficiaries. Account designation is a term used when talking about a beneficiary of a bank account. When an individual with a bank...
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IRS Unemployment Tax Relief: New Rules for Jobless WorkersThe new relief bill exempts some une...