Call Options Explained

call options explained

A call option provides the buyer the right, but not the obligation, to buy a stock at the specified strike price by the expiration date.

Buying on Margin and the Risks Involved

Buying on margin is the use of borrowed money to purchase securities. When you buy on margin, you only need to put down a fraction of the total purchase price.

Understanding Stocks vs. Options

Stocks and options are two common ways to participate in the stock market. They have different risk profiles and different potential outcomes.

Options Trading: A Beginner’s Guide

Options are used for many different purposes and can be applied to stocks, futures, currencies and more. Options trading is one of the most complicated forms of investing there is.

Magnet Dark Pool Prints

During the recent emergence of increased volatility in the stock market, our software has detected numerous dark pool prints that share a common discrepancy. This deviation has proven itself to be a viable edge for traders.

Payment For Order Flow

“Payment for order flow” is a term that has been frequently used over the past year. In this article we will explain what it means, the parties involved, how they benefit from it, and more.  What is Payment for Order Flow (PFOF)? Payment for order flow is the payment a brokerage firm (like Robinhood or […]

Implied Volatility Crush

There are several concepts that are very important to understand when trading options. These include bid-ask spreads, the greeks, and Implied Volatility (IV). This article will explain implied volatility and the concept of IV crush. Implied volatility is represented as a percentage and it indicates the volatility or estimated fluctuation in the underlying stock price […]

AI Power Alerts

Since the initial launch of our AI power alerts feature, we received a ton of feedback which helped us understand where improvements can be made.

Understanding Unusual Options Activity

Unusual Options Activity involves option contracts being traded at a much higher volume than their daily average. Large volume on option contracts can indicate that someone is making a bet based on transparent or non-transparent catalysts.

Bid-Ask Spread for Options Trading

The bid price for an option is the highest price a buyer is willing to pay for that option while the ask price is the lowest price a seller is willing to sell their option.

Short Term Vs. Long Term Options

To further understand the difference between short term and long term options, it’s useful to first understand that an option contract is made up of intrinsic and extrinsic value.

Understanding Dark Pool Prints

Dark pool print orders can only be found on private exchanges and are only accessible to institutions that cannot be accessed by the general public

Long Term Leap Option Strategy Investing

A very popular strategy used by value investors is purchasing leap option contracts. Generally, options are a powerful tool for both building capital and hedging existing plays.