Covered Write

Parity is basically a set of rules of equality that exist in the options market. For example, long stock and long puts is the as owning long calls. Parity generally holds, but (all else being equal) puts will often trade at lower prices than calls due to the impact of dividends and interest rates.

This is a type of options contract that can only be exercised at expiration. Most, but not all, index options settle European Style. The American Style Option has a different exercise schedule.

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 expiration cycle basically refers to the months available for a set of options. An example of an expiration cycle is March, June, September and December.

How To Find The Options Chain Just pull up the stock chart and click on the “Trade” tab in the upper left corner. If you are on a mobile device then you can click here to see how to open the Thinkorswim Option Chain on a mobile device. The Option Chain Explained After you open…

This is a long post, it helps you understand options a bit better and make some profitable decisions in the future! I try to make theta and options easier to understand by relating it to real estate and moving one step at a time. Let’s dive into the world of Theta and options trading!! #1:…