Options Trading
An option premium calculator estimates what an option should cost from stock price, strike, time, volatility, and rates, and splits it into intrinsic and time value.
Historical options data is the past prices, bids, asks, volume, open interest, and implied volatility of option contracts. What it contains and how to pull it into Excel.
Implied volatility is the volatility priced into an option. Learn how IV, the Greeks, the VIX, and volatility skew help you choose option strategies and manage risk.
What the SPY options chain shows, how to read calls, puts, premiums and time decay on it, and how to pull it into Excel with MarketXLS.
Options on futures explained: how futures contracts work, how calls and puts on futures are priced and traded, margin, expiration, and the main risks.
An option strategy needs four parts: the right analysis tools, a defined strategy such as a spread or straddle, diversification, and position-level risk limits.
Investing Wisely With Greek Options Greeks in option trading are popularly known as parameters that define the behavior of options or derivatives. Knowing about these parameters is essential for making wise decisions regarding investments. In this article, we will discuss the importance of Options Greeks, different risk management techniques to get maximum returns and finally, */ -->
The main risk of buying LEAPS is losing the full premium if the stock does not pass the strike by expiration. Time decay, IV drops, and wide spreads add risk.
How exercising a call or put option works on a broker such as Robinhood, when selling the option is better, and how to track options in Excel.
An iron condor is a four-leg, defined-risk credit trade; a strangle is a two-leg trade with undefined risk when sold. How the two differ in structure, volatility view, risk, and payoff.
Option prices depend on the stock price, strike, time to expiration, implied volatility, interest rates, and dividends. How each one moves call and put premiums.
Being delta positive means an options position gains when the stock rises. Learn how position delta works and which strategies (long calls, bull spreads, covered calls) are delta positive.
The Basics of Put Call Forward Parity Put-call forward parity states that for European options with the same underlying, strike, and expiration, the call price minus the put price equals the present...
Yield enhancement with options means selling options, such as covered calls and cash-secured puts, to earn premium. How it works, what it costs, and the risks.
What exercising a stock option means, when early exercise makes sense, and where TD Ameritrade (now Charles Schwab) accounts handle exercise requests.
How to measure the risk and reward of a stock option trade: premium, breakeven, maximum loss, and Greeks, using option calculators in Excel.