Option
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Forex Options Trading: A Comprehensive Guide for Retail Traders
Options are available for trading in almost every type of investment that trades in a market. Most investors are familiar with stock or equity options, however, there are options available to the re
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Understanding Options Exercise: A Comprehensive Guide
What Is Exercise? Exercise means to put into effect the right to buy or sell the underlying financial instrument specified in an options contract. In options trading, the holder of an option ha
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Open Interest Analysis: Identifying Bullish and Bearish Trends
Traders often use open interest as an indicator to confirm trends and trend reversals for both the futures and options markets. Open interest represents the total number of open contracts on a secur
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Synthetic Forward Contracts: Definition & How They Work
What Is Synthetic Forward Contract? A synthetic forward contract uses call and put options with the same strike price and time to expiry to create an offsetting forward position. An investor ca
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Understanding Stock Option Expiration Cycles: A Comprehensive Guide
Deciding to trade a stock option requires choosing an expiration date. Because option strategies require making modifications during the life of a trade, you need to know a stocks option cycle and i
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Interest Rate Call Options: Understanding the Basics & Mechanics
What Is an Interest Rate Call Option? An interest rate call option is a derivative in which the holder has the right to receive an interest payment based on a variable interest rate, and then s
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Understanding Time Value in Options Trading
What Is Time Value? Time value refers to the portion of an options premium that is attributable to the amount of time remaining until the expiration of the option contract. The premium of any o
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Understanding Call Options and Auctions in Finance
What Is a Call? A call, in finance, will usually mean one of two things. A call option is a derivatives contract giving the owner the right, but not the obligation, to buy a specified a
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Understanding Options Contracts: A Comprehensive Guide
What Is an Options Contract? An options contract is an agreement between two parties to facilitate a potential transaction on an underlying security at a preset price, referred to as the strike
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Understanding Triple Witching: Impact on Stock Markets
What Is Triple Witching? Triple witching is the simultaneous expiration of stock options, stock index futures, and stock index options contracts all on the same trading day. This happens four t
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Interest Rate Options: Definition & How They Work
What Is an Interest Rate Option? An interest rate option is a financial derivative that allows the holder to benefit from changes in interest rates. Investors can speculate on the direction of
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Understanding Deep In The Money Options: A Comprehensive Guide
What Is Deep In The Money? Deep in the money is an option that has an exercise or strike price significantly below (for a call option) or above (for a put option) the market price of the underl
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American Options: Understanding Early Exercise & Investor Flexibility
What Is an American Option? An American option is a version of an options contract that allows holders to exercise the option rights at any time before and including the day of expiration. Anot
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Understanding Put Options: A Beginner's Guide
A put is a strategy traders or investors may use to generate income or buy stocks at a reduced price. When writing a put, the writer agrees to buy the underlying stock at the strike p
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Understanding Options Pricing: A Guide to Greeks
Trying to predict what will happen to the price of a single option or a position involving multiple options as the market changes can be a difficult undertaking. Because the option price does not al
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Understanding Call Options: A Beginner's Guide to Successful Trading
The popular misconception that 90% of all options expire worthless frightens investors into mistakenly believing that if they buy options, theyll lose money 90% of the time. But in actuality, t
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Short Call Options Strategy: A Comprehensive Guide
What Is a Short Call? A short call is an options trading strategy in which the trader is betting that the price of the asset on which they are placing the option is going to drop. Key Take
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Rights Offerings: Understanding Shareholder Rights and Stock Purchases
What Is a Rights Offering (Issue)? A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in
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Protective Puts: A Guide to Risk Management Strategies
What Is a Protective Put? A protective put is a risk-management strategy using options contracts that investors employ to guard against the loss of owning a stock or asset. The hedging strategy
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Understanding Multi-Leg Derivatives Strategies: A Comprehensive Guide
What Is a Leg? A leg is one piece of a multi-part trade, often a derivatives trading strategy, in which a trader combines multiple options or futures contracts, or—in rarer cases—combinations o
Option
- Short Selling vs. Put Options: Understanding the Differences
- Long Put Options: A Comprehensive Guide for Investors
- Option Pricing Analysis: Evaluating Value & Identifying Opportunities
- Double Calendar Options Strategy: Low-Volatility Trading
- International Investment: A Strategy for Risk Management
- Calendar Spreads: Profiting in Low Volatility Markets
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Understanding Property & Casualty (P&C) Insurance: A Comprehensive GuideProperty and casualty (P&C) insurers are companies that provide coverage on assetsTangible AssetsTangible assets are assets with a physical form and that hold value. Examples include property, pla...
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Protect Your Investment: 10 Ways to Preserve Your Car's ValueA lot of car owners become concerned with the value of their cars only when it comes time to sell them. But cars don’t lose value overnight, unless of course they undergo an accident. The value of you...
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Understanding Business Financing: A Comprehensive GuideFinancing refers to the methods and types of funding a business uses to sustain and grow its operations. It consists of debtSenior and Subordinated DebtIn order to understand senior and subordinated d...
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Global Markets React to New COVID-19 Travel Bans; Stocks DeclineGlobal stocks dropped Monday as a fast-spreading strain of coronavirus emerging from England prompted fresh travel restrictions, dealing another blow to prospects for the global economic recovery. Fut...