( To learn more about how exactly put and call options work with layman examples and simple to understand concept, please read our Options Trading For Dummies.) Buying call options (long call options) gives you unlimited profit potential (as long as the price of the underlying stock keeps ...
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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...
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...
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...
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 ...
OppiE, author and owner of www.Optiontradingpedia.com, through his best personal options picks now! Try now for just $1!Employee Stock Options - Simplified ExampleLet's assume that you are granted employee stock options to buy 100 shares of your company stocks at $40 while it is trading ...