Perhaps the most important attribute of options is their flexibility as strategic risk tools. Contrary to the reputation as high-risk instruments, options cover the entire range of risk.

The value of options and their prices

Sarah R. 2018-05-13 12:01:39 Options buying, options selling, options premium, options prices

As a rule of thumb, for options expiring in the same month, the more in-the-money an option is, the higher its premium.

The four basic risk profiles for options

Tinah N. 2018-05-13 09:12:32 Buy call, buy put, write call, write put, maximum reward, risk and return

Once you’re familiar with these four risk profiles, you can combine them to create new winning strategies.

What are the intrinsic, time and extrinsic values in options trading?

George O. 2018-05-12 19:09:54 Intrinsic value, time value, extrinsic value, option speculation, low-volatility stocks

Option buyers, as a rule, will be willing to pay more for options when they perceive a greater than normal potential for price movement.

How call buying works?

Sarah R. 2018-05-12 14:21:49 Call buy, ready market, expiration date, exercise, striking price, stocks

When you buy a call, you are not required to buy the 100 shares of stock. You have the right, but not the obligation.

What is the definition of options?

Taylor Y. 2018-05-12 11:05:09 High-risk instruments, stock exchanges, collateral, equity, dividends

Contrary to the reputation as high-risk instruments, options cover the entire range of risk. They can be quite speculative and even expensive; the short options position can pose a very real risk and may even cause large losses.