Investing

Looking at a common situation, suppose that you have written a covered call. You owned 300 shares of YFS (Your Favorite Stock Inc.),…

For example, if the SPDR S&P 500 ETF (SPY) trades at $396 per share, we expect a significant move in the S&P 500.…

When I first started trading, online brokers were just starting to emerge, and my choices were limited. I remember spending hours watching CNBC,…

A winning ratio is simply a number of winning trades divided by the total number of trades. For example, a trader who won…

Options provide investors with the ability to proactively hedge their portfolios against potential market crashes. In this article, we will discuss the importance of being proactively…

In this article, we’ll discuss these differences and how they affect you, so you can discover how to avoid potentially costly problems.  …

First, online banking allows for split-second transfers from one bank to another bank or financial institution. Second, unlike the Depression, this silent bank…

  This is the list of my favorite Options Trading books:   The Rookie’s Guide to Options by Mark D. Wolfinger   Learn to…

  It is great for backtesting and perfecting trading strategies. It was made with the vision of allowing regular traders to have access to…

SFO (Stocks, Futures, and Options) magazine was a monthly financial magazine focused on trading and investing in stocks, futures, and options markets. The…

This article will delve into what exactly put/call parity is, the exact formula for calculating it, and how becoming familiar with this concept…

Managing portfolio volatility is a critical aspect of investing, and there are many strategies available to accomplish this goal. The covered call strategy…

After all, at their core, options are just contractual agreements between a buyer and seller to potentially do a transaction on a specific…

But in this article, we’re going to show you why early assignment is a vastly overblown fear, why it’s not the end of…

On the surface, index and stock options are very similar. Still, there are some differences that traders should be aware of. Understanding these…

  Furthermore, combining multiple options and creating a spread enables traders to express a number of views that would be impossible using stocks…

An option’s terminal value is entirely reliant on the underlying stock’s price on the expiration date, making values far more calculable.   But…

This dynamic nature of options allows you to craft a position to fit your exact market view. Perhaps there’s a big Federal Reserve…

There are two types of settlement: physical and cash.   The settlement process in an option contract depends on whether you own an…

They get a bad name because of their short-term nature, but at their core, they’re just options with a shorter lifespan. All of…