Put Ratio Spread (Explained with example)

put ratio spread

What is the Put Ratio Spread? The Put Ratio Spread is a neutral strategy in options trading adopted by traders. The strategy involves buying a select number of put options of a particular stock and expiration date at a higher strike price and selling more number of options at a lower strike price. It is …

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Import Option chain data from Thinkorswim in Excel(step by step guide)

Thinkorswim

An option chain, also known as an options matrix, is a listing of all the available option contracts, both puts and calls, for a given security. In an Option chain, traders typically focus on ‘last price’, ‘net change’, ‘bid’ and ‘ask’ columns to hedge their stock positions from rapid price fluctuations. In this article, I intend …

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Selling weekly put options for income (With Professional Risk-Management)

Weekly-income-selling-put-options

Most of the investors are inclined towards the options because it offers a great source of income generation. Call and Put strategies help an investor to generate income and hedge the risk of their portfolio. What is Options Trading? Options are the contracts that give the holder the right but not an obligation to buy …

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The wheel strategy for options (explained with example)

The wheel option trading startegy

So, you had a conversation with a friend or probably read a book about options. Being a newbie, you search about the strategies to trade options and stumble upon the “wheel options strategy”. Thumbs up to your research work. Now you surf through various websites and intend to learn the strategy. Good news for you, …

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How to use Options Trading as an Income Generation Strategy (with ease)

Options Trading

How to use Options as an Income Generation Strategy? Options trading is one of the most powerful techniques that provide an opportunity for an investor to create wealth. Investors seeking to generate income from equity portfolios on a regular basis can employ option writing strategies using puts and calls to buy and sell stocks. In …

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Options Trading for Beginners (Management and Tracking)

Option Contracts

Options Trading for Beginners As a beginner options trader, learning how to trade options can be an exciting experience, but it can also be extremely frustrating and very costly. There are some common mistakes that lead to many beginner options traders to lose large sums of money in a very short period of time. Here’s …

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Volatility surface chart (it’s impact on the profitability of option trades)

Implied Volatility Surface for AAPL

Volatility surface is the plot that can help you determine the best combination of the strike and the expiry date to maximize the profits on an Options Trade. Volatility Volatility is basically the fluctuation in the price of a product or a derivative. The more is the swing, the more is the volatility. There are …

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Unusual Options Activity – How to Identify, Act and Track for Success

Unusual Options Activity Benzinga

Introduction A common investment theory is that securities that are owned by institutional investors tend to trade with a closer correlation to the financial performance of the company or, in the case of futures contracts, with the overall economy. Traders, therefore, will frequently look at volume and implied volatility to determine future price direction.  Investors …

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Option Premium

Option Premium

The option premium is described in this article and calculated by the Options Profit Calculator with MarketXLS. Option premium depends on different variables, which are listed in detail. This article will discuss how to calculate the option premium of your portfolio. Contents What is Option Premium? Impact of Option Greeks on Option Premium Pricing Option …

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Credit Spread Vs Debit Spread

Credit Spread Vs Debit Spread

Credit Spread Vs Debit Spread are the strategies used in options; it is a defined-risk strategy that lets you make bullish or bearish speculative trades. Investors looking to make the best returns in today’s market can opt for a better trade options strategy. Let’s understand which is the better strategy credit spread or debit spread. …

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