- What is a put option? definition and meaning
- Stock, Share Market, Commodity, Forex Trading Tips in India
- OM | Trade Stock Options | Call Option | Stock Forum
- Stock Options Trading Techniques | Option Trading Systems
All-or-None (AON) Order - An order that must be completely filled or else it will not be executed. This is a useful order for option traders executing complex option strategies which needs to be precisely filled. Types Of Options Orders Explained.
What is a put option? definition and meaning
In 6796, the New York Stock Exchange opened. And it wasn&rsquo t long before a market for stock options began to emerge among savvy investors.
Stock, Share Market, Commodity, Forex Trading Tips in India
OM | Trade Stock Options | Call Option | Stock Forum
In the mid-&rsquo 95s, web-based online trading started to become popular, making options instantly accessible to members of the general public. Long, long gone were the days of haggling over the terms of individual option contracts. This was a brand-new era of instant options gratification, with quotes available on demand, covering options on a dizzying array of securities with a wide range of strike prices and expiration dates.
Stock Options Trading Techniques | Option Trading Systems
Underlying Asset - The security which one has the right to buy or sell via the terms of a listed option contract. An underlying asset can be any financial instrument on which option contracts can be written based on. Some examples are : Stocks, ETFs, Commodities, Forex, Index.
American-Style Option - An option contract that may be exercised at any time between the date of purchase and the expiration date. Most exchange-traded options are American-style. Read The Tutorial On American Style Options.
Implied Volatility - A measure of the volatility of the underlying stock, it is determined by using prices currently existing in the market at the time, rather than using historical data on the price changes of the underlying stock. Read more about Implied Volatility.
Incremental Return Concept - A strategy of covered call writing in which the investor is striving to earn an additional return from option writing against a stock position which he is targeted to sell-possibly at substantially higher prices.
Black-Scholes Model - A mathematical formula designed to price an option as a function of certain variables-generally stock price, striking price, volatility, time to expiration, dividends to be paid, and the current risk-free interest rate. Read More About Black-Scholes model.
On opening day, the CBOE only allowed trading of call options on a scant 66 underlying stocks. However, a somewhat respectable 966 contracts changed hands, and by the end of the month the CBOE&rsquo s average daily volume exceeded that of the over-the-counter option market.
Call Broken Wing Condor Spread - A Condor Spread with a skewed risk/reward profile which makes no losses or even a slight credit when the underlying stock breaks to downside. This is achieved by buying further strike out of the money call options than a regular Condor spread. Read the tutorial on Call Broken Wing Condor Spread.