What Is A Ratio Spread?
This 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
This 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
A range option is a European-style, cash-settled option that has a payout if the value of the underlying interest falls within a specific range of values (the range length) at expiration. As the underlying interest value increases throughout the range length, the amount of the payout (i.e., the cash settlement amount) of the range option…
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I’ve been asked and have explained The Wheel strategy many times, so I thought it may be a good idea to write it down all in one place for posterity! This is the only options strategy I use and IMHO it is about as low risk and reliable as options trading gets. You will NOT get…
This is when you sell a call and buy a call with a higher strike price. A Bear Call Spread is used when you have a bearish outlook on a stock and you want to bet against it by going short but you don’t want to shirt the stock because it theoretically has unlimited risk….
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 call option is deep in-the-money when the strike price is well below the current market price. A put option is deep-in-the-money when the strike price is much higher than the current market price. On the Option Chain below, box “A” shows us the Deep in the Money Calls and box “B” shows the Deep…