Covered Straddle

This is when you enter into a position by purchasing one part of the spread at a time rather than buying it all at once. Legging can improve the risk-reward of the trade if the underlying stock moves in the right direction. If not, it can reduce the potential loss.

This is an order that you would place to offset an existing long position. For example, If you buy a call option to open a new position, you would then need to offset or close that position with a closing order. This is an order to sell-to-close.

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. 

Options with intrinsic value, or in-the-money options, are automatically exercised at expiration so that option holders don’t inadvertently leave money on the table. Since June 2008 , all options that are a penny or more in-the-money at expiration are exercised at expiration.

My name is Chris Corwin Gayle and I am a trader and Trading System developer. The purpose of this article is to break down the concept of Unusual Options Activity into simple language and show you exactly how to use it profitably. There are numerous sources online that are just outright misrepresenting what UOA is…

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…