Moneyness

This is also known as the offer. The asking price is the current market price at which an investor can buy the option in the market. 

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…

This is a spread strategy that involves selling options and buying a greater number of out-of-the-money options. Backspreads are often in a ratio of 1 to-2 or 2-to-3 and most traders use them because they work well when there is an increase in market volatility especially when they think the market is about to move…

The time Value of Options refers to the value of the options contract beyond its intrinsic value. Time value is equal to the extrinsic value of the options contract. Out-of-the-money options consist only of time value. The value of in-the-money options can include both intrinsic value and time value. See also In The Money Options,…

This is also known as the “actual volatility” and it measures the past price movement of an underlying asset. The historical information offers a comparison of what of what is happening with present volatility and what has happened in the past. You can also check out Implied Volatility (IV)

Combination positions are positions in more than one option at the same time. Spreads and straddles are two types of combination positions. A spread involves being both the buyer and writer of the same type of option (puts or calls) on the same underlying interest, with the options having different exercise prices and/or expiration dates….