An Options Strangle is created when we buy (or sell) one call option at a higher strike price + one put option at a lower strike price and same expiration date. When we buy the call + put option, we create a long strangle, and when we sell a call + put option, we create a short strangle. Options Strangle:… Read More »What is an Options Strangle?
An Options Straddle is created when we buy (or sell) one call option + one put option at the same strike price and same expiration date. When we buy the call + put option, we create a long straddle, and when we sell a call + put option, we create a short straddle. Options Straddle: What is a Long Straddle?… Read More »What is an Options Straddle?
A bear put spread is a vertical spread created by buying a put option (long put) at a higher strike price, and selling a put option (short put) at a lower strike price. Both the put options – long and short – must have the same expiration date. In example below, we are buying a $150 Strike Price put and… Read More »What is a Bear Put Spread?
A bull put spread is a vertical spread created by buying a put option (long put) at a lower strike price, and selling a put option (short put) at a higher strike price. Both the put options – long and short – must have the same expiration date. In example below, we are buying a $130 Strike Price put and… Read More »What is a Bull Put Spread?
A bear call spread is a vertical spread created by buying a call option (long call) at a higher strike price, and selling a call option (short call) at a lower strike price. Both the call options – long and short – must have the same expiration date. In example below, we are buying a $170 Strike Price call and… Read More »What is a Bear Call Spread?
A bull call spread is a vertical spread created by buying a call option (long call) at a lower strike price and selling a call option (short call) at a higher strike price. Both the call options – long and short – must have the same expiration date. In example below, we are buying a $150 Strike Price call and… Read More »What is a Bull Call Spread?
Stock Picking vs ETF – What’s Better for Beginners? If you want to start investing in individual stocks, keep in mind that it is not a walk in the park. There are over 2800 stocks trading on the New York Stock Exchange (NYSE). Picking a handful few to invest in is not an easy task. When you mention someone about… Read More »Stock Picking vs ETFs
How Does The Stock Market Work? Have you ever wondered ‘How does the Stock Market work? Who enables these buy and sell orders? Investors pay a particular price to buy a share, but do you know how the stock price is determined? You probably already know about ‘Supply and Demand’, so how does it govern the price of a stock?… Read More »How the Stock Market Works
What is Single Option Strategy? A single option strategy or the single-legged strategy is the basic form of trading options. You either buy a single call option or put option, or sell a single call option or put option. What is a Long Call? When you expect the stock price to go up before the expiration date, you buy a… Read More »Options Trading Strategies: Comprehensive List
The greeks, such as Theta and Vega, of stock options help us explain the price of the stock option contract. These are theoretical concepts, which are directionally correct, but the option price changes are not guaranteed to follow any exact ‘formula’. In this post we will explore the concept of theta of a stock option and also understand what Vega is. What… Read More »The Greeks: Theta and Vega of a Stock Option
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