Managing portfolio volatility is a critical aspect of investing, and there are many strategies available to accomplish this goal. The covered call strategy is one of the most popular strategies…
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Investing
After all, at their core, options are just contractual agreements between a buyer and seller to potentially do a transaction on a specific date. And the process that ensures that…
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…
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…