(Most traded options are American options. The underlying can be bought or sold anytime . However ‘European’ options, which can only be exercised on contract expiration, exist too ). …
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Investing
I experimented with various strategies that mainly involved long options, which would eventually depreciate and eat away at my capital. How to start trading a small account Starting to…
What Is Trading Volume? Trading volume refers to the number of options contracts buyers and sellers are exchanging during any given period, usually a trading day. It is monitored for individual securities and…
Description of LEAP Options A LEAP option is essentially an option with longer terms than standard options. The acronym “LEAP” stands for Long Term Equity Anticipation Security and like standard…
One way that you can choose to invest your cash is to invest in precious metals. They are prized investments the world over and yet so many people don’t understand…
What Are Options? Options are contracts that allow an investor the option to purchase or sell stock at a particular price anytime before it expires. An option contract…
Call Options Call options are the right to buy a share at a predetermined price sometime on the future. The have a few key features and terms: Underlying…
However, it’s still worth knowing what rho means, as it does provide another dimension of understanding as to how the price of an option may fluctuate. What Is Rho?…
Options Delta Explained For example, should a stock option price increase in price by 0.5c with a 1c increase in the underlying stock price then the option has a delta…
Options Theta Explained Options Theta Math It’s not necessary to understand the math behind theta (please feel free to go to the next section if you want), but for those…