What Is The Options Automatic Exercise Value Of A Capped Option?

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 the process of carrying out the terms of an options contract. A call buyer can exercise his or her right to buy the stock at the strike price. A put owner can exercise his or her right to sell the contract. See also: Exercise Price, Exercise Settlement Value, Automatic Exercise

DTE means Days To Expiration. This is basically the number of days left until your Option contracts expire.  As an options trader you will want to play very close attention to the DTE when you are selecting which contract to buy or sell. The number of days to expiration can impact the profitability of a…

What is an Option Sweep? An option sweep is basically when a big trader breaks up a large order into small individual trades. This is usually done in order to get filled fast or to conceal a large order.  The common thinking is that a sweep usually means a big trader knows something and is…

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

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…