Options trade on a public exchange, and their price is affected by the ups and downs of the underlying stock. Here are the major terms to know when trading options:Underlying stock: The stock represented by the option. Each stock has its own distinct set of options. Strike price: The ...
There arefourbasic option positions, depending on if you’re the buyer or seller, and whether it’s a Call or a Put, here’s a handy chart showing all the types of options trades. Exercising and Assignment Exercising and Assignment are two important terms to familiarize yourself with before ...
Zero Days to Expiration Options (0DTE) Article Options strategies Here are 5 commonly used strategies.Log into see additional strategies within the Options Strategy Assistant. Expand all Covered call Cash covered put Bull put spread Bear call spread ...
Inverse ETFs.Using financial derivatives such as options and futures contracts, these ETFs seek to capture theoppositeperformance from what a given index is delivering. If that index is going up, then these ETFs are designed to go down, and vice versa. Inverse ETFs are popular among investors ...
Options provide almost unlimited flexibility. Because of this flexibility, there are many ways to accomplish the same goals. Equivalent Positions are trades that carry similar risk, reward, and probability profiles. For example, acovered calltrade has a nearly identical profit/loss profile as selling...
Where to Trade Options There are many online broker that allow you to trade options, including the following platforms: 🏆 TastyTrade TastyTrade is a platform designed for active traders, especially if you are involved in options trading. They are frequently listed as one of the best, specifical...
An ETF trades throughout the day, which means its NAV fluctuates more often than a mutual fund's.
Options trading is the practice of buying or selling options contracts. These contracts are agreements that give the holder the choice to buy or sell a collection of underlying securities at a set price by a specific date. Investors can, but don't have to, own the underlying security to pur...
Alternative investments are investment options outside of traditional investments such as stocks, bonds, and cash. Alternative investments may include a wide range of assets such as real estate, commodities, private equity, hedge funds, art, collectibles, or cryptocurrencies. These investments are gener...
Centralized exchanges are usually businesses that operate as intermediaries for traders. They facilitate trades and offer many other financial services. Traders who prefer more anonymity may not like using centralized exchanges because they are often required to comply with anti-money laundering laws, whi...