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This is an order that you would place to offset an existing long position. For example, If you buy a call option to open a new position, you would then need to offset or close that position with a closing order. This is an order to sell-to-close.

How Do You Find Option Sweeps? There are two ways you can go about finding Option Sweeps:  If you go with option 1 then you need to set your filters to look for repeat activity in a stock and then you will have to tabulate the total number of contracts that are bought across all…

These are the Options with the most time left until expiration. Or, simply, the most distant expiration months. As you can see in the image below, the Jan 2024 and the Jun 2024 expiration would be considered the “back months” because they have 570 and 724 days to expiration, respectively.

Adjustments may be made to some of the standardized terms of outstanding options upon the occurrence of certain events related to the underlying security. The determination of whether to adjust outstanding options in response to a particular event, and, if so, what the adjustment should be, is made by OCC, taking into consideration policies established…

The option writer is obligated—if and when assigned an exercise—to perform according to the terms of the option. The option writer is sometimes referred to as the option seller. An option writer who has been assigned an exercise is known as an assigned writer. Example:If a physical delivery XYZ call option is exercised by the…

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…