What Is Option Vega?
Vega, the only one of the Greeks not represented by a Greek letter, is the estimate of the change in the theoretical value of an option for a 1-percentage …
Should You Consider ETF Alpha?
When Paul V. Azzopardi started ETF Alpha, he had the aim to provide a service which actually worked and produced results better than buy-and-hold and, at the …
3 Frightful Seasonality Trends
Ahead of Hallow’een, which stocks are displaying frightful bearish seasonal trends? One unsurprising listing on the top 3 bearish seasonal list is iShares …
Compare Historical Volatility And Implied Volatility
When a high option premium roughly matches stock volatility, we can expect premium to stay high so long as stock volatility does not change. A change in stock …
What Is Historical Volatility And Implied Volatility?
There are two types of volatility used in securities analysis: historical and implied volatility. One measures historical price movements while the other …
What Is Option Theta? Θ
Time decay is a term used to describe how the theoretical value (time value) of an option reduces, or decays, with the passage of time. Theta, one of the …
How Does Delta Change Over Time?
How accurate is our delta model in the real world of options? The following table illustrates current- and near-month deltas on Nvidia Corp. (NVDA) when the …
Options Delta
One of the so-called “Greeks”, delta measures how much an option’s price moves as a result of a $1.00 price change in the underlying stock. Note that …
What Is The Effect Of Covered Call Writing In Your Account?
When you write or close a covered call, what happens in your trading account? This is not complicated but you need to know what the effects will be and how to …
How To Close A Covered Call Trade
Closing a buy-write position is simply a reversal of the trade entry process: we buy back the short calls and sell the underlying stock. Let’s walk through …
How To Make Money Online
If you are looking for some extra cash to pay off debt or enjoy some of the finer luxuries in life, look no further. For anyone struggling to figure out how to …
Entering the Covered Call Buy-Write Trade Order
Below is a typical order entry form used by online brokerage firm optionsXpress.com for buy-write covered call trades – it will be similar at most online …
Covered Call Trade Order
It all starts with the trade order. We have examined bid and asked price quotations and various order types. Now we will see how to properly open and close a …
What Is A Market Order, Limit Order, Stop Order?
The order you enter should reflect your trading strategy, not just be placed to effect the trade. For example, if you are entering a trade in leisurely …
Options Chains Explained
Option prices are typically presented by brokerage firms in option chains, sometimes called an option montage (mostly in books). Notice how the following …
Stock And Option Prices Explained
Stock and option “prices” are the bid and asked price quotations posted by market makers (MM) or exchange specialists, not to be confused with the …
Here’s Why Cellectis SA Fell as Much as 31.6% Today
What happened Shares of biopharma Cellectis (NASDAQ:CLLS) fell nearly 32% today after the company announced that the U.S. Food and Drug …
Stock Ratings
To make smarter buy and sell decisions, you can use various fundamental, technical, sentiment and macro-economic tools and factors. Fundamental research …
How To Buy And Sell Options
It is market wisdom that smart option traders buy cheap options and sell expensive options. And indeed, we frequently see that the ideal option to buy will be …
What Is Open Interest?
Open interest is the number of contracts open (outstanding) in a unique option series. A standard option contract relates to 100 shares, so for example an open …