The Options Industry Council is a resource used to educate investors about the benefits and risks associated with trading equity options. This article will explain everything there is to know about the Options Industry Council. It is important for investors to realize that this resource is out there to help them succeed in options trading. […]
The put-call parity is the relationship that exists between put and call prices of the same underlying security, strike price, and expiration month. The put-call parity is important because it eliminates the possibility of arbitrage traders making profitable trades with no risk. This article will explain what arbitrage is, what the put-call parity is, and […]
In terms of option trading, open interest means the total number of option contracts that are currently active, and have yet to be closed out, exercised, or expired. Open interest is an important concept to understand as it can be used to gauge the market activity and liquidity of an option. This article will explain […]
In terms of option trading, volume is the number of option contracts traded in a given period of time. This article will explain why volume is important and how volume gets its value. It is useful to understand what volume is in order to have success in options trading. Every time an option holder buys […]
The option Greeks provide a way to measure the change in the price of an option when affected by certain factors. By reading this article, investors will gain a better understanding of each of the option Greeks and how the price of an option comes to be. This tool can be used to make better […]
The married put is an option strategy where an investor buys an “at-the-money” put option while simultaneously buying an equivalent number of shares of the underlying stock. The married put is an effective strategy to protect against depreciation in a stock’s price. From this article, investors will learn the basics of the married put and […]