What is the Options Cap Interval?

The price change in an option for every point move in the underlying Stock/ETF. Put options have negative deltas.  See Also: Delta Neutral

A Box Spread is simply a combination of two vertical spreads. These spreads are used by professional Options traders who are trying to take advantage of a situation where the cost of the spreads (both verticals) is less than what the verticals would be worth when they expire. They consider this to be a type…

This is also known as a Crossed Trade and it is basically a transaction/trade that is done from one broker to another ( broker to broker) rather than in the open market place. See Also Option Conversion

Are Call Sweeps Bullish? The short answer is not always. I have been tracking and trading Unusual Options Activity for many years and I have seen both Bullish & Bearish sweeps on the Call side. What this means is that you can have a sweep order to sell Calls which is essentially taking a bearish…

This is basically the amount of intrinsic value that an options contract has. In other words, it is the relationship between the strike price of the option and the price of the underlying asset. See at-the-money and Deep in-the-money.

This method is normally used when Options are overpriced. The trader would simply buy stocks in the open market and sell the equivalent position in the options market. This is done because the trader sees that the Options price is too high and anticipates that it will eventually decrease. So he/she decides to cash in…