Breakeven Point

There are three ways that you can go about setting stops on your Options trades and all three methods work well whether you are day trading or swing trading.  Method 1: Setting A Percentage (%) Stop Loss This is basically when you take an option trade and set a stop loss on the contract price…

A delayed start option is an option that does not have an exercise price when first introduced for trading but instead has an exercise price setting formula pursuant to which the exercise price will be fixed on a specified future date. 

How Do You Find Option Sweeps? There are two ways you can go about finding Option Sweeps:  If you go with option 1 then you need to set your filters to look for repeat activity in a stock and then you will have to tabulate the total number of contracts that are bought across all…

In the case of a physical delivery option, the exercise price (which is sometimes called the “strike price”) is the price at which the option holder has the right either to purchase or to sell the underlying interest. EXAMPLE: A physical delivery XYZ 40 call option gives the option holder the right to purchase 100…

A binary option is a cash-settled option having only two possible payoff outcomes: either a fixed amount or nothing at all. Some binary options are referred to as “fixed return options.” As of the date this product was approved for trading, the only binary options approved for trading (other than credit default options, as defined…

When the price of the underlying stock is equal to the strike price of the option, the contract is At The Money. In the image below you can see that the current price of APPL is 139 and the red rectangles are highlighting the fact that the JUL 15th 139.00 Calls & Puts are currently…