Most conservative investors shy away from shorting stock. If good news comes out, the stock could rise suddenly, faster than the investor can roll the put. Most investors looking to collect premium trading puts will simply sell aNaked Putor trade aBull Put Credit Spread....
Though more advanced option traders love to spend their time talking about spreads, butterflies, strangles, naked calls and naked puts (actual things – not porn for option junkies!), collars, condors, and all sorts of other fun and exciting strategies that can be employed when trading options,...
Let us learn about the covered call strategy with an example. Assume that the SBI stock is trading at Rs.189 on April 29th, 2023. Now, as per the covered call strategy, you will take two positions mentioned below. Leg 1: Buy 100 shares of the stock for Rs.189 Leg 2: Sell the ...
Explore Vita Coco Company (COCO) current option strategy benchmark values, compared against a historical index. Find how the symbol's current option risk measures up against values from the past year for several option strategies in 30-day, 60-day, 90-da
Rather than discussing a stock with a high Vol/OI ratio from yesterday’s trading for today’s commentary, I’ve decided to go way out to December 2027, nearly to the end of Trump’s second term in office. The two options with the highest DTE were aMicrosoftcall and a...
In exchange for the premium, you’ll get peace of mind knowing you have a fixed sell point ready at your discretion. The protective put strategy in action Suppose you own 100 shares of stock XYZ and it’s currently trading at $100 per share. You’ve watched it appreciate in value over...
Generate income. Let's look at a basic covered call example. Say a trader owns 100 shares of XYZ Corp., which is trading around $32. There are several strike prices for each expiration month (see below). For now, let's look at calls that are OTM, that is, the strike prices are ...
ATM Put and 75-Delta Put strategies are available to see how at-the-money or in-the-money puts performed over the last ATM Straddle is one at-the-money straddle (1 call option, 1 put option) for the nearest expiration to the end of the selected timeframe. Often, straddles price in...
Straddle options are entered into for the potential income to the upside or downside. Consider a stock that's trading at $300. You pay $10 premiums for call and put options at a strike price of $300. You may capitalize on the call if the equity swings to the upside. You may capitaliz...
Understanding how to trade strangles allows you to potentially profit no matter which way an asset’s price moves for a relatively small investment. When trading strangles, it’s important to identify your maximum potential loss, breakeven points, and exit strategy to increase your chances of turni...