Breakeven Point

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…

The price change in an option for every point move in the underlying Stock/ETF. Put options have negative deltas.  See Also: Delta Neutral

The Intrinsic Value is basically the value of an in-the-money option minus its time value. Intrinsic value is the current real tangible value of the options contract. The intrinsic value of a call option is calculated by subtracting the strike price of the Option from the underlying stock. For a put, intrinsic value is the…

This is the difference between the current bid price and the current asking, or offering price. For example, if you see a quote that looks like this: 2.05 x 3.10 – what this means is that the bid is 2.05 and the ask is 3.10. Therefore the bid-ask thread is 1.05 i.e the difference between…

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…

The cost of Unusual Options Activity data varies depending on the quality and quantity of the data that you want.  If you want raw data from the exchanges like CBOE then you could easily be looking at a few thousand per month plus other costs. This is usually what institutions and data professionals use.  If…