Option
-
Rainbow Options: Understanding the Strategy & Investment Potential
The rainbow option is a specific type of option that many traders like to use. Here are the basics of the rainbow option and a consideration of whether it is a solid investment strategy. Rainbow
-
Bull Vertical Spread Strategy: A Beginner's Guide to Profitable Options Trading
The bull vertical spread strategy is a very popular strategy for casual investors who wish to enjoy tremendous rates of returns. Unlike trading options outright the bull call spread has the adva
-
Bear Call Spread: A Beginner's Guide to Profiting from Market Declines
The bear call spread is used to profit from an expected drop in the price of the market. The strategy writes call options as opposed to buying call options for the bull call spread. When writing
-
Options Strategies for Managed Futures Accounts: A Comprehensive Guide
Managed futures accounts are a great way for any investor to diversify a portfolio. Most experts agree that up to twenty percent of an investment portfolio should be allocated to risk capital. O
-
Delta Hedging: A Comprehensive Guide for Options Traders
If you have traded options before, you may have heard the term delta hedging. The most followed analytical variables for options are delta, theta, vega, rho and gamma. Delta is the Greek symbol
-
Understanding Naked Calls: Risks & Strategies for Experienced Traders
A naked call occurs when you write or sell a call option by itself. It’s termed naked call because of the unlimited downside risk. You can also buy a call that has a limited risk; you woul
-
Credit Spread Options: A Limited Risk, Limited Reward Strategy
The credit spread option is essentially a limited gain, limited risk strategy that seeks to profit by selling options. For call options one would sell the low strike price option and buy the hig
-
Horizontal Spread Strategy: Capitalize on Time Value Discrepancies
The horizontal spread is one of many options strategies. However, few strategies are able to take advantage of the discrepancies of the time value in options. The horizontal spread strategy, als
-
Index Arbitrage Explained: Profiting from Price Discrepancies
Index arbitrage is the systematic process of trading the spot market and the futures market in such a way that captures the difference between the two prices. Index arbitrage occurs on a daily b
-
Box Spread Trading Strategy: A Beginner's Guide
The box spread is a trading strategy that seeks to accumulate a rate of return near that of an interest-rate bond. Using the box spread entails buying puts and calls. Given it is an arbitrage st
-
VIX Options: Trading Market Volatility for Profit
Markets go up, and markets go down; you can take advantage of this by trading volatility with the VIX option. This volatility has been calculated and measured for decades, but more recently, it
-
Backspread Options Strategy: Understanding & Implementation
An options backspread is a ratio strategy with call or put options. Either the long or short side will have more weight. For instance, a call ratio backspread could be to sell the lower strike p
-
Iron Condor Spread: A Comprehensive Guide to Risk-Defined Options Trading
The iron condor spread is an advanced options strategy that uses multiple positions to create a limited risk strategy. It is also known as a reverse condor spread, essentially the credit spread
-
Call Options: A Beginner's Guide to Leveraged Investment Strategies
This article is a start in learning to make money with call options. Call options afford the investor with great flexibility to make leveraged investment returns. Some of the benefits include th
-
Understanding Option Intrinsic Value: A Clear Explanation
Intrinsic value for call options is literally the difference between the price of the market and the strike price (or exercise price), as long as the market is above the strike price. The intrin
-
Understanding the S&P 500 Mini Futures: A Guide for Traders
The S&P 500 mini is a highly followed and traded futures product. Because it is a mini futures contract, it is popular among smaller traders who cannot afford the risk of the full futures contra
-
Greenshoe Option Explained: A Guide for Investors
The greenshoe option is a feature that allows an underwriter of a particular security to sell more shares than what was originally discussed. Here are the basics of the green shoe option and wha
-
Option Time Decay: Understanding Theta and Its Impact
Investing in options is difficult for one of two reasons; time decay and timing the markets. Since options have a time value attached to them, they are depreciating assets. To understand time va
-
Understanding Warrant Coverage: A Guide for Investors
Warrant coverage is an option that allows a shareholder to purchase additional shares of a security for a predetermined amount. Many corporations will offer warrant coverage as an incentive for
-
Inflation Derivatives: A Guide to Protecting Your Investments
Inflation derivatives are a type of investment that are designed to protect investors against rising inflation rates. Here are the basics of the inflation derivative and how it works. Inflation
Option
- Understanding the Risks & Rewards of Cheap Out-of-the-Money Options
- Understanding Synthetic Financial Instruments: A Comprehensive Guide
- Understanding Options Theta: A Guide to Time Decay
- Pairs Trading: Understanding Market Correlations & Strategies
- Digital Options: A Comprehensive Guide to European & American Options
- Plain Vanilla Swaps: Definition, Types & How They Work
-
Stop Making Excuses: Essential Reasons to Start Saving NowIt's easy to think of reasons n...
-
15-Year vs. 30-Year Mortgage: A Comprehensive ComparisonI’m going to attempt to answer the age-old question: 15 vs 30 year mortgage: which is better? And I hate to break this to you, but it all depends (and I’m not even going to mention taxes here). I wan...
-
Electronic Banking: Benefits, Drawbacks & What to ConsiderOnce a novelty, electronic banking over the internet has become as commonplace as online shopping. That's not surprising because it offers convenience and flexibility that a brick-and-mortar bank ...
-
Budget Baby Shower Ideas: Planning a Beautiful Celebration Without Breaking the BankIs it baby season? Maybe there’s something in the water, I’ve been planning a LOT OF baby showers recently. In fact, I even helped plan my own a few months ago. When I was a young girl, ...