The bear call spread and the bear put spread are option strategies used when an investor expects the price of the underlying security to fall. These strategies can be advantageous for investors when trying to profit off of the decline in the underlying security’s price. This article will explain the basics of the bear call […]
The Options Clearing Corporation is a clearing organization that acts as the issuer and guarantor for option and futures contracts. This article will explain the basics of the Options Clearing Corporation. It is important to understand what the OCC is because they ensure that the obligations on contracts that they clear are fulfilled. The OCC […]
John Dobosz is the editor for two widely-read investment newsletters: Forbes Dividend Investor and Forbes Premium Income Report. Before working at Forbes, Dobosz gained experience working with CNN Financial News and Bloomberg TV. He is an investment expert who focuses on options-selling trades on dividend-paying stocks which generate superior levels of income and total returns. […]
In relation to options, the Greek letter, Theta, represents how much an option’s price will decline due to the passage of time. It is also known as an option’s “time decay.” By reading this article, an investor will gain a better understanding of what Theta is, and how it can be used to better his […]
In regards to options, the Greek letter, Gamma, indicates how much the Delta will change given a $1 change in the underlying security. Delta shows how a $1 change in the underlying security affects the option’s price. The Gamma is used to show how the Delta might change with that same $1 move. This article […]
In terms of options, the Greek letter, Delta, is a theoretical estimate of how much an option’s price may change with a $1 change in the underlying security’s price. This article will explain what Delta is, and how it works in real-world examples. Understanding Delta is a tool an investor can use to advance his […]