Tag: the Financial Times

We’ll also provide some tips on how to pick the right strategy for your trading goals and risk tolerance. So whether you’re looking to make a quick profit or hedge your portfolio…

Here’s our guide to this phenomenon and its uses in options trading…   Implied Volatility Skewness Background Implied volatility (IV) describes the market’s expected volatility ‘implied’ by its price.   Five…

The Options: Greek Vega Explained Investing in options is always challenging because you need to predict with the greatest degree of accuracy possible what is likely to happen to the…

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…

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…

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…

Call Options Call options are the right to buy a share at a predetermined price sometime on the future.   The have a few key features and terms:   Underlying…

(Most traded options are American options. The underlying can be bought or sold anytime . However ‘European’ options, which can only be exercised on contract expiration, exist too ).  …

Description of LEAP Options A LEAP option is essentially an option with longer terms than standard options. The acronym “LEAP” stands for Long Term Equity Anticipation Security and like standard…

(We have similar post on the opposite trade: Buy To Open vs Buy To Close)   What Is Sell to Open In Options Trading? An open position means that you’re…