Posts by ivtrades

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…

This is basically any spread where the premium paid from buying part of the spread is greater than the premium received for the other part of the spread. For example…

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…

This is a spread  where the premium received from selling part of the spread is greater than the premium paid for the other part of the spread. For instance, if…

This 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.

This is when you sell a straddle against shares that you already own. It is important to note that the covered straddle is not really fully covered since only the…

How To Find The Options Chain Just pull up the stock chart and click on the “Trade” tab in the upper left corner. If you are on a mobile device…

A covered call is executed when you buy the underlying stock/shares and then sell Calls against it. The trade is considered covered because the shares will cover what is now…

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…

The condor is basically a combination of a bull call spread and a bear call spread. Essentially, options with consecutive strike prices, buying options with a lower exercise price, and…