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At first glance, it seems simple and elegant. Depending on the direction of underlying movement, the option can be defined to set up easy profits. But it is not quite…

Here is how the wheel works: It is set up to earn profits on long stock, receive quarterly dividends, and sell short puts and calls. The idea is that profits…

These also are termed compound options, an aptly named form that describes exactly what they are. They also are called split-fee options because they involve potentially two strikes, two premiums,…

This is where the lookback option enters the picture. Also called a hindsight option, the lookback reduces the uncertainties of timing. In exchange, the lookback is more expensive than the…

A knock-out barrier option expires worthless when the underling exceeds a preset price, so profit potential is limited. It can also be a knock-in barrier option, meaning value is generated…