Options are risky investments not only because they create leverage but also because they take expertise level knowledge and/or experience to understand their behaviors. Once you understand the fundamentals of

Options are products with expiration dates and many of their characteristics change constantly depending on many factors including the passing time. This dynamic nature of options requires investors to adjust

Iron condor is a non-directional structured option strategy and it is comprised of 2 vertical spreads: 1 call spread and 1 putspread amounting 4 options in total (2 call and 2

Covered call strategy is probably one of the most popular structured derivative strategy in the investment world. It has a simple logic, it is not extremely risky relative to how

Straddle, strangle and butterfly strategies each offer very interesting risk/profitprofiles and various outcome possibilities. If you know some of the optiontrading fundamentals, market dynamics and technical parameters about options(such as greeks,

Vertical spreads are created by same kind of options (call or put) on the same underlying security and with the same maturity date but different strike prices. For instance, Iron

Butterfly Option Trading Strategy Iron Condor Option Trading Strategy You can see structured derivatives as products created by mixing different derivatives and securities to achieve customized outcomes. Often in this mix two options

We’ve already seen that delta is the option’s price sensitivity based on the price change of underlying asset. As the underlying price changes, option’s price also changes based on its delta value. Throughout

Most utilized option greeks are Delta, Theta, Vega and Rho. Option greeks signify sensitivity of an option’s price. Each greek is the sensitivity measurement for a variable that affects the

Volatility is an important input of the formula that is used for option pricing. It shows the magnitude of variance that exists in the price changes of an underlying security

Time decay is an option’s loss of value as time passes. We know that every option has two components in its value. One is intrinsic value which shows the value

Ask any wise man and they’ll tell you becoming pro is not something to take lightly. It usually equals sweat equity and expert knowledge. It’s also true in the case

Fundamentals of option trading is our concept that strives to draw a complete picture for the aspiring option trader, traditional portfolio manager, curious student or anyone who wants to have