What is a physical delivery option ?
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.
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What is the Options Cap Interval?
ByivtradesThe cap interval is a constant established by the options market on which a series of capped options is traded. The exercise price for a capped-style option plus the cap interval (in the case of a call), or minus the cap interval (in the case of a put), equals the cap price for the option….
Intrinsic Value
ByivtradesThe Intrinsic Value is basically the value of an in-the-money option minus its time value. Intrinsic value is the current real tangible value of the options contract. The intrinsic value of a call option is calculated by subtracting the strike price of the Option from the underlying stock. For a put, intrinsic value is the…
How To Buy & Sell Options On Thinkorswim
ByivtradesIf you are new to the Thinkorswim platform, it can be a little overwhelming with all the bells and whistles and tabs. One of the things that can be a little tricky at the outset is figuring out how to buy to open and sell to close ( enter & exit) Options trades. But first…
Covered Write
ByivtradesThis is when you put on a short option position and hedge it with another option position or with long shares. This is essentially the opposite of a naked write.
What Is A Ratio Spread?
ByivtradesThis is a spread trading strategy that involves buying and selling options, but the trader typically sells a greater number of contracts sold than what is purchased. See also Ratio Back Spread & Ratio
What Is A Delayed Start Option?
ByivtradesA delayed start option is an option that does not have an exercise price when first introduced for trading but instead has an exercise price setting formula pursuant to which the exercise price will be fixed on a specified future date.