Cole Turner
Option Trading Strategies — The Seven You Need to Know
There are many options strategies that investors can use to diversify their portfolio and generate a profit. Options strategies range from being very simple to being very complex. However, every option strategy involves using calls and puts. This article will introduce seven option strategies that every investor should be aware of. When studied and used […]
The Market Makers for Options – Who are They?
An options market maker is an individual, or a large financial institution, that has a contractual relationship with an exchange, such as the Chicago Board Options Exchange. Market makers ensure a certain level of liquidity in the options market to keep trading running efficiently. It is not necessary to understand what market makers do if […]
The Market for Options – Everything You Need to Know
Learn how stock options could potentially bring you additional profits.
What is a Call Option? Understanding Its Definition
The definition of a call option is a contract that is sold by one party to another that gives the buyer the right, but not the obligation, to purchase an underlying stock at a specified price, known as the strike price, by an agreed-upon expiration date. A call option, which represents 100 shares of the […]
What it Means to be “in-the-Money” – Options Trading
The investment term “in-the-money” refers to an option contract that is worth exercising because it has value. A call option is “in-the-money” when the market price of the underlying security is above the strike price. A put option is “in-the-money” when the market price of the underlying security is below the strike price. It is […]
What it Means to be “out-of-the-Money” – Options Trading
An “out-of-the-money” option is worthless to a buyer if it expires. A call option is “out-of-the-money” when the market price of the underlying security is below the strike price. A put option is “out-of-the-money” when the market price of the underlying security is above the strike price. It is important to understand that an “out-of-the-money” […]