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 the world, and what to do if…
Investing
On the surface, index and stock options are very similar. Still, there are some differences that traders should be aware of. Understanding these differences can save you from making some…
Furthermore, combining multiple options and creating a spread enables traders to express a number of views that would be impossible using stocks or futures. But the flexibility and…
An option’s terminal value is entirely reliant on the underlying stock’s price on the expiration date, making values far more calculable. But crunching some numbers and coming up with…
This dynamic nature of options allows you to craft a position to fit your exact market view. Perhaps there’s a big Federal Reserve meeting coming up and you expect the…
There are two types of settlement: physical and cash. The settlement process in an option contract depends on whether you own an American or European-style option contract. Before we…
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 the same principles of options apply to…
It’s a core tenant of how options are priced, and it’s often the trader with the most accurate volatility forecast who wins in the long term. Whether you like it…
Those are: Delta Theta Vega Gamma Today, we’re talking about gamma, which is often described as the “delta of delta.” We know that delta measures an option’s sensitivity to price…
1. Understand Your Goals And Risk Tolerance The first thing you should do when taking your investments to the next level is to understand your goals and risk tolerance. Everyone…