Posts by ivtrades

If you sell a certain type of option and you already have or get the thing you're supposed to sell through that option, you're called a covered call writer. EXAMPLE:…

Combination positions are positions in more than one option at the same time. Spreads and straddles are two types of combination positions. A spread involves being both the buyer and…

The rules of the options markets generally limit the maximum number of options on the same side of the market (i.e., calls held plus puts written, or puts held plus…

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…