European Style Option

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…

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…

With the recent move by top brokers like TD Ameritrade to eliminate commissions there have been lots of new traders opening new accounts there. A lot of these traders are coming from using apps like Robinhood which are popular for their simplicity so starting to use a new platform like TOS can be quite a challenge….

This is when you sell Put options with the intention or to take delivery of the underlying shares. Cash is deposited in the account and, if the stock price falls to the strike price of the put option, you get the delivery of the shares into the account once the Options expire.

No.  Investors look to the confirmations and statements that they receive from their brokerage firms to confirm their positions as option holders or writers. An option holder looks to the system created by OCC’s rules, rather than to any particular option writer, for performance of the option he owns. Similarly, option writers must perform their…

Are Call Sweeps Bullish? The short answer is not always. I have been tracking and trading Unusual Options Activity for many years and I have seen both Bullish & Bearish sweeps on the Call side. What this means is that you can have a sweep order to sell Calls which is essentially taking a bearish…