A combination in options trading is a strategy involving different calls and puts on the same asset. Learn how these ...
Improve your trading decisions by learning how to measure option liquidity effectively using daily volume and open interest metrics.
When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...
Options trading allows investors to limit their risk and leverage their capital, but it can also expose them to amplified losses. It’s one of the most flexible trading styles because of the many ...
Put and call options are the building blocks of many options trading strategies. A call option gives the holder the right, but not the obligation, to buy a stock at a specified price (the strike price ...
Picking the right options trading strategy for you will depend on what direction you think a stock’s price will go and your capacity to absorb losses. Buying an option, or “going long,” will have less ...
Day trading options is a popular strategy for traders who seek to take advantage of short-term market fluctuations. Options are financial derivatives that give the holder the right, but not the ...
Options trading has become more accessible, but choosing the right platform still matters. Fees, contract pricing, research tools and execution quality can significantly affect results -- ...
Options allow for greater flexibility when it comes to expressing a wide variety of market outlooks. Implied volatility tends to rise into earnings events, providing options sellers with potential ...
One of the fastest ways new options traders lose money has nothing to do with the market. It’s strategy confusion. Most beginners learn about long calls and puts, and then immediately jump into ...