Block Trade

A capped option will be automatically exercised prior to expiration if the options market on which the option is trading determines that the value of the underlying interest at a specified time on a trading day “hits the cap price” for the option. Capped options may also be exercised, like European-style options, during a specified…

With the recent move by top brokers like TD Ameritrade to eliminate commissions there have been lots of new traders opening new accounts there. A lot of these traders are coming from using apps like Robinhood which are popular for their simplicity so starting to use a new platform like TOS can be quite a challenge….

A covered call is executed when you buy the underlying stock/shares and then sell Calls against it. The trade is considered covered because the shares will cover what is now a short Call position. So this means the shorting/sale of the Calls was not “naked”. This method can be used to generate income using stock…

This is an options contract, put or call, that can be exercised at any time prior to expiration. Stock, exchange-traded funds, and some index options also settle American-style. The alternative is the European Style Option which can only be exercised at expiration.

The best way for me to explain what you are seeing in a typical UOA trade is to show you an example of a typical trade and then break it down for you.  The first thing you will probably notice in the image above is that one of the trades says “SWEEP DETECTED” and the…

Options Ratio is basically the number of puts traded divided by the number of calls. It can be applied to an individual stock, a sector, an index, or an entire market. Put/call ratios are generally used in contrary manner. For example, when ratios reach extremely high levels, put buying is unusually high and it could…