Tag: options

The Difference Between SPX and SPY – Options Trading

When looking to invest in the S&P 500, SPX and SPY options are similar assets with a high...

Index Options – Explained and Simplified

An index option is a contract that gives the buyer the right, but not the obligation, to buy...

Intrinsic and Extrinsic Value – Options Trading

The intrinsic and extrinsic value of an option make up the total value of the option, or the...

Broken Wing Butterfly and Butterfly Spread – Option Trading Strategies

The broken wing butterfly and the butterfly spread are two different types of option trading strategies that involve...

Bear Call Spread and Bear Put Spread – Option Trading Strategies

The bear call spread and the bear put spread are option strategies used when an investor expects the...

Options

Stop Loss Order vs Stop Limit Order – What Is It?

A stop loss order and a stop limit order are two tools that can be used by an...

Strike Price

What Is the Strike Price (Exercise Price) – Options Trading

The strike price, also known as the exercise price, is the fixed price at which the owner of...

What it Means to Exercise an Option?

To exercise an option means to put into effect the right specified in the options contract. An options...

Option trading

The Basics of Option Pricing – How to Understand It

The price a buyer pays for an option contract is called the option premium. This article will explain...

A Beginner’s Guide to Demystify Trading Options

Here is a guide that can help you learn the ropes to trading options.