What is a cash-settled option?

Tracking Options Flow can be very useful if you know how to take advantage of it. It basically allows you to see what the big traders are doing in real time.  The common thinking is that  these big traders know something that others don’t and are taking a position in anticipation of a move. However,…

This is also known as the Strike Price, it is the price at which a call buyer can call/buy the underlying Stock/ETF or a put buyer can sell the underlying Stock/ETF See also: Options Exercise, Exercise Settlement Value, Automatic Exercise

A physical delivery option gives its owner the right to receive physical delivery (if it is a call), or to make physical delivery (if it is a put), of the underlying interest when the option is exercised.

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.

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)

This is a spread  where the premium received from selling part of the spread is greater than the premium paid for the other part of the spread. For instance, if you sold the AAPL 140.00 Calls @ 4.00 and bought the AAPL 142.00 Calls for 2.00 you have a credit of 2.00. See also Bear…