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This is when you sell Put options with the intention or to take delivery of the underlying shares. Cash is deposited in the account and, if the stock price falls…

A Calendar spread is when you sell an option and buy another one with a more distant expiration date. This can be created with either puts or calls. For example,…

This is basically a combination of Bull Spread and Bear Spread. The main feature of this strategy us that your risk is fixed and your upside/profit is capped. Selling options…

The point at which a strategy produces no profit and no loss.

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…