What is a cash-settled option?

Time value is whatever the premium of the option is in addition to its intrinsic value. Time value is that part of the premium that reflects the time remaining before expiration. An American-style option may ordinarily be expected to trade for no less than its intrinsic value prior to its expiration, although occasionally an American-style…

In the index market, it is the value of the index at expiration. For many indexes, the settlement value is computed on Friday morning and, for that reason, the last day to trade some index options is on a Thursday before expiration. See Also:  Exercise Price, Automatic Exercise

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 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,…

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,…

A covered call is executed when you buy the underlying stock/shares and then sell Calls against it. The trade is considered covered because the shares will cover what is now a short Call position. So this means the shorting/sale of the Calls was not “naked”. This method can be used to generate income using stock…