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.
Stocks and options are two common ways to participate in the stock market. They have different risk profiles and different potential outcomes.
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.
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
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.
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.
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.
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.
If you’ve ever looked at an option chain, you’ve likely seen some strange words attached to the contracts you’re looking at. Delta, Theta, Gamma, and
Options are something many retail investors don’t mess with. Either from impatience, losses, lack of knowledge, or it doesn’t fit their personal risk parameters.
Options money flow can be used as a strategic tool in your trading arsenal, but you have to have some experience with it to fully appreciate the power of it.
All the analysis information is for reference only and doesn’t constitute an investment recommendation.
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© 2021 Cheddar Flow. All Rights Reserved.
All the analysis information is for reference only and doesn’t constitute an investment recommendation.
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© 2021 Cheddar Flow. All Rights Reserved.
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