Cole Turner
What It Means to be ‘in-the-Money’ – Options Trading
The investment term “in-the-money” refers to an option contract that is worth exercising because it has value. A call option is “in-the-money” when the market price of the underlying security is above the strike price. A put option is “in-the-money” when the market price of the underlying security is below the strike price. It is […]
What It Means to be ‘out-of-the-Money’ – Options Trading
An “out-of-the-money” option is worthless to a buyer if it expires. A call option is “out-of-the-money” when the market price of the underlying security is below the strike price. A put option is “out-of-the-money” when the market price of the underlying security is above the strike price. It is important to understand that an “out-of-the-money” […]
Forex (FX) Options Trading – How to Profit from Currency Options
A foreign exchange option, also known as an FX option or a currency option, is a contract that grants the buyer the right, but not the obligation, to buy or sell currency at a specified exchange rate on or before an expiration date. Currency options give corporations, financial institutions, and individuals the opportunity to limit […]
Straddle – Everything to Know About This Options Strategy
A straddle is an options strategy where an investor simultaneously buys a call and put with the same strike price and expiration date for the same underlying stock. A straddle is an effective strategy to use when an investor expects an underlying security to have significant volatility in the near future. By reading this article, […]
Long vs Short Straddle – Option Trading Strategies
The long straddle and short straddle are option strategies where a call option and put option with the same strike price and expiration date are involved. The long straddle offers an opportunity to profit from a significant move in either direction in the underlying security’s price, whereas a short straddle offers an opportunity to profit […]
What are Option Spreads?
An option spread involves simultaneously buying and selling options of the same type with different strike prices and expiration dates for the same underlying security. Option spreads are appealing to investors because they can be used to reduce the total cost of entering a trade. This article will provide a basic understanding of certain option […]