What Is The Options Expiration Cycle?
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.
The price change in an option for every point move in the underlying Stock/ETF. Put options have negative deltas. See Also: Delta Neutral
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…
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…
This is when you own shares in a particular stock and then you sell Calls against it and then buy Puts. You would use this strategy when you think that the stock rice is a little overdone and you are expecting some downside. This has limited risk due to the long put option, but also…
This is a large equity trade consisting of 100,000 or more shares.
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…