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A Box Spread is simply a combination of two vertical spreads. These spreads are used by professional Options traders who are trying to take advantage of a situation where the…

This is a large equity trade consisting of 100,000 or more shares.

This is the difference between the current bid price and the current asking, or offering price. For example, if you see a quote that looks like this: 2.05 x 3.10…

This is a measure of a stock’s volatility relative to the S&P 500 Index. High Beta stocks have high volatility. Stocks that have a beta reading of 1.00 or greater…

This is when you buy a Put and sell another Put with a lower strike price. You would only use this spread if you are expecting the underlying stock to…

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…

These are the Options with the most time left until expiration. Or, simply, the most distant expiration months. As you can see in the image below, the Jan 2024 and…

Options with intrinsic value, or in-the-money options, are automatically exercised at expiration so that option holders don’t inadvertently leave money on the table. Since June 2008 , all options that…

When the price of the underlying stock is equal to the strike price of the option, the contract is At The Money. In the image below you can see that…

When an option seller or writer receives an exercise notice, assignment has occurred. When assigned, writers must deliver the goods (shares or cash). For example, let's say you sold 1…