Ads
related to: option selling strategies
Search results
Results from the WOW.Com Content Network
A covered call involves selling a call option (“going short”) but with a twist. Here the trader sells a call but also buys the stock underlying the option, 100 shares for each call sold.
Here is how those types stack up: Income strategies. These include covered calls and cash-secured puts involve selling options to collect premiums upfront. This generates income, but also caps ...
Options strategy. Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables. Call options, simply known as Calls, give the buyer a right to buy a particular stock at that option's strike price. Opposite to that are Put options, simply known as Puts ...
8. Iron Condors. Iron condors involve two call options and two put options, one long and one short each. They all have different strike prices but the same expiration date. Investors use them in ...
In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of ...
Strangle (options) In finance, a strangle is an options strategy involving the purchase or sale of two options, allowing the holder to profit based on how much the price of the underlying security moves, with a neutral exposure to the direction of price movement. A strangle consists of one call and one put with the same expiry and underlying ...
A short straddle is a non-directional options trading strategy that involves simultaneously selling a put and a call of the same underlying security, strike price and expiration date. The profit is limited to the premium received from the sale of put and call. The risk is virtually unlimited as large moves of the underlying security's price ...
How does a put option work and why would someone buy (or sell) one? Skip to main content. 24/7 Help. For premium support please call: 800-290-4726 more ways to reach us ...
Ads
related to: option selling strategies