Cole Turner
What is Binary Options Trading?
A binary option is a derivative financial product in which the payoff for the buyer is a fixed monetary amount if the option expires “in-the-money,” or nothing at all if the option expires “out-of-the-money.” Binary options are one of the simplest financial assets to trade, which has resulted in broad appeal amongst traders and newcomers […]
The 3 Best Books for Options Trading
Options offer investors the opportunity to diversify their portfolio and generate another stream of income. Before investing in options, it is important that investors fully understand what options are to minimize the risk involved in options trading. There are numerous books and online resources an investor can use to become familiar with options. From this […]
The Collar Option Strategy – What is it?
The collar option strategy involves holding shares of the underlying stock while simultaneously buying an “out-of-the-money” put option and selling an “out-of-the-money” call option. This is a good strategy to use when an investor is mildly bullish on a stock but also wants to protect against a downside move in the stock’s price. By reading […]
Intrinsic and Extrinsic Value – Options Trading
The intrinsic and extrinsic value of an option make up the total value of the option, or the price paid for the option by the buyer to the seller. It is important to understand what intrinsic and extrinsic value is in order to see how option contracts get their prices. This article will explain intrinsic […]
Covered Put – Option Trading Strategy
A covered put is an option strategy where an investor writes a put option while shorting the shares of the underlying stock. The covered put can be used when an investor is trying to increase his profits from shorting the underlying stock or when he is protecting his short position against a slight rise in […]
Covered Call – Option Trading Strategy
A covered call is an option strategy where an investor writes a call option for a stock that he already owns. The covered call is a conservative but effective strategy that can be used to generate small profits. This article will explain everything there is to know about the covered call and give investors confidence […]