Covered Write
This is when you put on a short option position and hedge it with another option position or with long shares. This is essentially the opposite of a naked write.
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ByivtradesI’ve been asked and have explained The Wheel strategy many times, so I thought it may be a good idea to write it down all in one place for posterity! This is the only options strategy I use and IMHO it is about as low risk and reliable as options trading gets. You will NOT get…
Cash Settlement
ByivtradesThere are some options settle for cash rather than shares. Indexes like the S&P 500 Index (.SPX) and the S&P 100 Index (.OEX) are examples of cash settled options.
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ByivtradesOrder Flow is basically the study of the way a stock reacts to the limit or market orders that are placed at certain price levels. When it comes to Unusual Options Activity, the order flow principles are the same, in that you want to pay attention to how the Option price, and the price of…
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ByivtradesThe point at which a strategy produces no profit and no loss.
What is a cash-settled option?
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The Ultimate Guide To Selling Options Profitability
ByivtradesThis 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:…