Cole Turner

Options
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Implied volatility indicates how volatile a security’s price may be in the future. It is important to understand that implied volatility is one of the factors that influences the price of options. This article will explain implied volatility so that investors can make intelligent decisions about buying and selling options. High implied volatility means that […]

Options
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A stop loss order and a stop limit order are two tools that can be used by an investor to get into and out of the market at times when an investor may not be able to place an order manually. By using these orders, an investor is telling his broker that he does not […]

Option trading
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The collar option strategy involves holding shares of the underlying stock while simultaneously buying an “out-of-the-money” put option and selling an “out-of-the-money” call option. This is a good strategy to use when an investor is mildly bullish on a stock but also wants to protect against a downside move in the stock’s price. By reading […]

Option Premium
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The intrinsic and extrinsic value of an option make up the total value of the option, or the price paid for the option by the buyer to the seller. It is important to understand what intrinsic and extrinsic value is in order to see how option contracts get their prices. This article will explain intrinsic […]

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Options offer investors the opportunity to diversify their portfolio and generate another stream of income. Before investing in options, it is important that investors fully understand what options are to minimize the risk involved in options trading. There are numerous books and online resources an investor can use to become familiar with options. From this […]

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Quadruple witching occurs four times a year and refers to the third Friday of March, June, September, and December. On these days, stock index futures, stock index options, stock futures, and stock options all expire simultaneously. This causes an increase in volume and volatility of the securities. The reason that trading volume and volatility increases […]