This is a comprehensive catalog of research articles, video lessons and a glossary of Options, Futures & Stock trading terms.
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…
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 then you can click here to see how to open the Thinkorswim Option Chain on a mobile device. The Option Chain Explained After you open…
A Golden Sweep Option (GSO) is popularized by the folks at Flowalgo and it is basically a very large order that hits the market and takes all or most the inventory/offers at once. This is usually a very high probability signal given the aggressive stance of the trader(s) behind it. These orders can be both bullish…
The Thinkorswim platform can be a bit intimidating and hard to navigate especially if the only other platform you have known is something like Robinhood or one of those plain vanilla tools. But Thinkorswim is like a Swiss army knife of trading and is really a powerful platform once you learn your way around it. In…
With the recent move by top brokers like TD Ameritrade to eliminate commissions there have been lots of new traders opening new accounts there. A lot of these traders are coming from using apps like Robinhood which are popular for their simplicity so starting to use a new platform like TOS can be quite a challenge….
If you are new to the Thinkorswim platform, it can be a little overwhelming with all the bells and whistles and tabs. One of the things that can be a little tricky at the outset is figuring out how to buy to open and sell to close ( enter & exit) Options trades. But first…
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: An individual owns 100 shares of XYZ common stock. If she writes one physical delivery XYZ call option—giving the call holder the right to purchase…
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 writer of the same type of option (puts or calls) on the same underlying interest, with the options having different exercise prices and/or expiration dates….
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 calls written) with respect to a single underlying interest that may be carried in the accounts of a single investor or group of investors acting…
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…
