Option
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Covered Call Options: A Beginner's Guide to Income Strategy
If you own a covered call option, you own both a call option and the amount of the underlying security. A covered call option is generally considered the safest and most conservative approa
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Understanding the Risks of Selling Call Options: A Comprehensive Guide
The risk exposure when writing call options is the single biggest consideration you need to make before investing capital. Depending on whether you are pursuing a covered call writing program or
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Option Theta Explained: A Guide for Option Traders
Understanding option theta is a critical element of option trading because it directly impacts one of the two elements of an option’s value: time value and intrinsic value. Theta is t
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Understanding Exotic Options: A Comprehensive Guide
Exotic options provide many opportunities for those who wish to dabble in the speculative world of options. An option gives you the right to buy or sell an asset at or before a specific poi
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Understanding European Options: A Comprehensive Guide
The European option is a unique variation on the traditional option model. The option gives an investor the right to purchase or sell something at a given price. There are many variations o
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Understanding Options: A Beginner's Guide to Investment Strategies
If you are new to the world of options, you soon realize that you have several different ways to invest based on option type. An option is a method to invest that many people are not familiar wi
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Navigating Options Trading: Avoiding Common Mistakes for Beginners
Trading options is one of the most complicated ways to trade in the financial markets. Stocks and bonds are very simple by comparison. Therefore, if you have no experience in the field of o
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Binary Options Trading: A Comprehensive Guide for Beginners
A binary option is a unique investment tool that has given more people the opportunity to get involved in options. An option contract gives an investor the opportunity to buy or sell an ass
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Understanding Option Spreads: A Risk Management Strategy
If you are investing in the stock market, you should learn about option spreads. These mitigate the risk you take when buying shares. Before we can understand what an option spread is we first n
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Understanding Swap Options: A Comprehensive Guide
A swap option is a complicated financial instrument that allows two parties to trade cash flows based on a number of different arrangements. In most cases, the party electing a swap option, or s
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Call Options: A Beginner's Guide to Profitable Buying Strategies
If you are looking into options trading, you will want to know more about how to profit from buying call options. Call options can be extremely profitable and give great rates of return if the u
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Digital Options: A Comprehensive Guide to European & American Options
Digital options are also called binary options. Digital options come in two varieties; the European and the American. Just like normal options, the values of digital options are based on the val
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Implied Volatility Calculators: Tools for Options Trading
If you are trading stocks or options, it will be useful for you to calculate implied volatility. Volatility is the term used to denote the stability of a given stock’s price, in relation t
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Understanding Options Theta: A Guide to Time Decay
In order to find the options theta of an option, you need to take the derivative of an options value by time first. This will always be a negative number, but you will need to use the absolute v
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Understanding Option Expiration Dates: A Crucial Guide
The importance of the option expiration date cannot be understated. If you do not have a good grasp on expiration dates, you run the risk of letting your options expire and they become worthless
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Understanding Stock Option Valuation: A Practical Guide
In order to understand the value of your option, you should become familiar with the concept of stock option valuation. Valuing options can involve fairly advanced mathematics. You do not need t
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Researching Stock Options: A Guide to Online Tools & Strategies
There are a number of internet tools available for researching options quotes. One of the biggest difficulties that come with investing in options is choosing the right options to invest in. The
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Understanding American Options: Exercise Flexibility & Key Differences
American options can be exercised at any time before the expiration date. This is in direct contrast to European options which can only be exercised at the expiration date. The
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Profiting from Option Volatility: Strategies for Investors
You can use an option volatility and make it work for you. Many psychological studies have found that humans have an optimistic bias. You can use this information and capitalize on it. Options a
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Understanding Traditional Option Pricing Models: Black-Scholes & Monte Carlo
An option pricing model that is most commonly used is the Black-Scholes model, but there is also the Monte Carlo method for pricing options. Both of these mathematical models try to create a sta
Option
- LEAPS: Understanding Long-Term Equity Options - Definition & Benefits
- Binary Options Trading in the U.S.: A Comprehensive Guide
- Securitization Explained: How Assets Become Investable Securities
- Commodity Options Trading: Understanding the Purpose & Benefits
- Monte Carlo Options Method: Analyzing Complex Investments
- Long Put Strategy: Protecting Your Portfolio with Options
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Uncovered Interest Rate Parity (UIRP): Explained & ImplicationsThe Uncovered Interest Rate Parity (UIRP) is a financial theory that postulates that the difference in the nominal interest rates between two countries is equal to the relative changes in the foreign ...
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Maximize Your Tax Savings: 6 Essential Deductions for Rideshare DriversThe government expects a cut of your Uber or Lyft earnings. Fortunately, there are a nu...
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Affordable Housing Strategies: Living Below 30% of IncomeWhy one writer made a conscious decision not to be house-poor. ...
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YNAB Mobile Hacks: 6 Tips to Boost Your BudgetingLearn how to add emojis in YNAB, search on mobile, and more! These hacks will have you budgeting with more efficiency than a Tim Ferriss fanboy. YNAB Mobile Hacks Did you know in YNAB you could…...