Cole Turner
Delta Hedging – Options Trading Strategy
Delta hedging is an option strategy whose goal is to limit the risk associated with price movements in the underlying stock, by offsetting long and short positions. Like other hedging strategies, delta hedging is a good tool to use to minimize, or eliminate, potential loss in an investment. By reading this article, investors will gain […]
What is Hedging? – Option Trading
Hedging is a strategy used by investors to reduce or eliminate the risk of holding one investment position by taking another investment position. Option contracts are a great tool to use to hedge against risks in underlying stocks. From this article, investors will gain the necessary knowledge to start using options as a hedging technique […]
Long Put vs Short Put – Option Trading Strategies
The long put and short put are option strategies that simply mean to buy or sell a put option. If an investor wants to profit from an increase or decrease in a stock’s price, then buying or selling a put option is a great way to do that. This article will prepare investors to effectively […]
Long Call vs Short Call – Option Trading Strategies
The long call and short call are option strategies that simply mean to buy or sell a call option. Whether an investor buys or sells a call option, these strategies provide a great way to profit from a move in an underlying security’s price. This article will explain how to use the long call and […]
Using a Cash-Backed Call Option Strategy
A cash-backed call option, also known as a cash-secured call, is an option strategy where an investor buys a call option while setting aside enough cash to buy the stock at the strike price. A cash-secured call is used when an investor wants to purchase a long-term bullish stock at the price he is willing […]
What is a Call Option? Understanding Its Definition
The definition of a call option is a contract that is sold by one party to another that gives the buyer the right, but not the obligation, to purchase an underlying stock at a specified price, known as the strike price, by an agreed-upon expiration date. A call option, which represents 100 shares of the […]