Posts by ivtrades

This is when you sell an options contract and simultaneously buy one with a later expiration date and a higher or lower strike price. For example, if your sell to…

The price change in an option for every point move in the underlying Stock/ETF. Put options have negative deltas.  See Also: Delta Neutral

This is an Options position where the total delta exposure is zero. For example, you can create a delta neutral position like this: Since 100 shares has a delta of…

This is the process of satisfying put exercise or call assignment. In either case, stock is delivered. In the case of indexes, delivery involves the transfer of cash equal to…

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…

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…