Tracking and managing Income from Options Trading (In Excel)

real-time-options-tracking(market XLS)

What are the Options? Options are derivative financial instruments that derived their value from underlying assets. Nowadays, trading in options has become very popular. People trade options mainly because of leverage. With little margin of capital, you can create a substantial amount of wealth. But one must not forget the risk-reward ratio associated with options. …

Read moreTracking and managing Income from Options Trading (In Excel)

How to trade options on Robinhood? (step-by-step guide for beginners)

Robinhood-feature image

Robinhood is a free-trading app that allows investors to trade stocks, options, exchange-traded funds, ADRs, and cryptocurrency at $0 commissions or fees. It was founded in 2013 by Vladimir Tenev and Baiju Bhatt. It has launched a mobile app in 2015. Its mobile app is easy to use. In 2017, Robinhood also launched its website. …

Read moreHow to trade options on Robinhood? (step-by-step guide for beginners)

Long Call Options Trade/Strategy-How to Manage and Track

  What are Long Call Options? A long call option strategy is purchasing a call option with the expectation that the underlying stock will rise. Long call options strategies will necessarily be delta and theta positive. Long call options positions are significant for both seasoned and novice traders because they can be initiated with defined …

Read moreLong Call Options Trade/Strategy-How to Manage and Track

Long Call Diagonal Spread – An Advance Option Strategy

Long Call diagonal spread

What is a Diagonal Spread? A Diagonal Spread is the options strategy that combines horizontal spread (calendar spread) and vertical spread. It involves simultaneously buying and selling of the same class of options with different strikes and expiration dates. The term “diagonal” comes from the options chain layout where the two options contract with different …

Read moreLong Call Diagonal Spread – An Advance Option Strategy

Open Interest Analysis (Explained With Examples)

Open interest analysis

What is the open interest? Open interest (OI) is the total number of outstanding contracts of the derivative products (futures and options) in the market. Market participants are still holding their position on these contracts. Traders predict market sentiments by analyzing open interest. It gives the signal on entry and exit of the market participants. …

Read moreOpen Interest Analysis (Explained With Examples)

How to manage your option trades (explained with template)

Managing & Tracking option trades

A lot of the beginners are not able to make sense of some of the functions or components of a strategy that online tracking platforms offer, especially when it comes to options. Its better to always start with something that is easy to understand and that can be customized, as and when the need arises. …

Read moreHow to manage your option trades (explained with template)

5 Successful options strategies using the Most liquid Options

Options Strategies

What are the liquid options? Liquid options are the ones that are traded frequently and are popular among the investors. Liquid options have a huge demand and supply in the market. It is always advisable to trade in liquid options as options contracts have a short term expiration period. Liquidity gives investors the flexibility to …

Read more5 Successful options strategies using the Most liquid Options

Manage and track short call options (step by step guide)

short call tracking and management

Short Call Lets break this thing into parts. A short position on an option means that you are selling an option contract. In simple words it means that you are giving the right to the buyer of the option contract to exercise the option on or before its expiry date at a predetermined strike price. …

Read moreManage and track short call options (step by step guide)

Put Ratio Backspread Strategy (Manage Your Risk)

Trading of options is increasing day by day, as it provides an opportunity for an investor to gain profit. But one can’t deny the fact that options involve risk and uncertainties. The risk for the option buyer is limited while it is unlimited for the option seller. So one needs to be very careful while …

Read morePut Ratio Backspread Strategy (Manage Your Risk)

All about Credit Spreads (explained with examples)

Credit Spreads

A credit spread involves purchase of one option (call or put) & the sale of another option, both with the same maturity and underlying security but with a different strike price. The main reason why this strategy is called a credit spread is because it involves net inflow of premium from the two positions involved …

Read moreAll about Credit Spreads (explained with examples)