Buying Put Options
1. Scenarios: Buying put options is also one of the common option strategies used by many investors. 2. Description: Buying put options means that you need to pay a premium…
Cracking the Code: What Determines the Value of Options?
Picture an option as a coupon that lets you snag a great deal on a product within a specific time frame. Its value stems from the ability to give you a discount on an item, but you better use it quickly because…
Types of Options
Options can be divided into two main categories: call options and put options. Options can also be classified based on where they’re traded: on exchange or off-exchange. Another important factor is the exercise style, which is…
Delta
Introduction Delta is arguably the most important “Greek” for options traders to understand. It measures the rate of change in an option’s price based on movements in the underlying asset’s price….
Buying Call Options
The four fundamental options trading strategies, often referred to as single-leg strategies, include buying call options, buying put options, selling call options, and selling put options. These strategies are centered…