Tag: author
The Synthetic Covered Call Options Strategy Explained
The answer is the Synthetic Covered Call. What Is A Synthetic Option Strategy? A synthetic covered call is an options position equivalent to the covered call strategy (sold call options over an…
Read More »Wall Street strategist and ’10 Surprises’ author Byron Wien dies at 90
Original source: https://www.investing.com/news/stock-market-news/wall-street-strategist-and-10-surprises-author-byron-wien-dies-at-90-3211107
Read More »Call And Put Backspreads Options Strategies
In both cases a (usually near the money) option is sold and used to partially fund the purchase of two (or more) out of the money options. Let’s see an…
Read More »Buy to Open vs Buy to Close
It’s important to know what these terms mean. In addition, you should know under what circumstances you should buy to open and when you should buy to close. (We have…
Read More »Options Spreads: Put & Call Combination Strategies
Options Spreads Combinations Explained For example a trader may sell one AAPL 170 call and buy one AAPL 160 call, a type of call spread as defined below. In…
Read More »Out Of The Money (OTM) Options Explained
Let’s look at a couple of examples: Out Of The Money Call Option Suppose a trader owns a 140 IBM Call Dec 20 call option allowing them to buy IBM…
Read More »Zero Cost (Costless) Collar Explained
The Costless Collar Explained In Detail Stock investors are exposed to downturns in share prices and often use options to protect against major losses. The simplest protection method is…
Read More »Options Greeks: Theta, Gamma, Delta, Vega And Rho
What Are Options Greeks? Financial derivatives can be volatile and sensitive to factors such as changes in the pricing of the underlying asset. Each character denotes the of sensitivity of…
Read More »Gamma Scalping Options Trading Strategy
By re-centering their positions, traders can benefit from the inherent profit associated with being long gamma and continuously re-hedging their delta exposure. The primary purpose of gamma scalping is…
Read More »Options Delta Explained: Sensitivity To Price
Options Delta Explained For example, should a stock option price increase in price by 0.5c with a 1c increase in the underlying stock price then the option has a delta…
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