A trading strategy that involves replacing the purchase of stocks with the purchase of its deep in the money call options so that more cash is retained in an account for hedging purpose. Stock Replacement Strategy - Introduction The Stock Replacement Strategy is an options trading strategy that ...
Put Spreads can be broadly classified as Vertical Put Spreads, Horizontal Put Spreads or Diagonal Put Spreads in options trading, based on the relative moneyness and expiration date of the Put Options used in the position. Vertical Put Spreads are Put Spreads that consist of Put Options of the...
Optionsare contracts that give the owner of a stock the right to buy (call options) or sell (put options) another security at a predetermined price, called the strike price. Stocks for option trading are the most common, but option contracts are also traded on futures, foreign currency, and...
The Short Horizontal Calendar Call Spread, also known as the Short Call Horizontal Calendar Spread or Horizontal Short Calendar Call Spread, is a volatile options trading strategy that profits when the underlying stock breaks out to upside or downside. As a form of short calendar spread, the Shor...
about what stock options are is a must for anyone who wishes to participate in options trading. This tutorial shall provide a free, indepth look into what stock options are, the different types of stock options, how they work and much more, written in layman terms and explained with ...
Let's assume that you are granted employee stock options to buy 100 shares of your company stocks at $40 while it is trading at $40 now. You are only allowed to exercise the rights vested in those employee stock options 1 year later (vesting period of 1 year). 1 year later, your ...