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Adjusted Options
Options that are created as a result of a capital restructure in the underlying stock. It is non-standardized and...

American Style Options
American Style Options are options that can be exercised at anytime before expiration. As European Style Options can...

Assignment
Assignment happens when in the money options that you wrote are exercised by the investors who bought those options. When call ...

Backspread
Backspreads are options trading strategies designed to profit when a stock breakout to either upside or downside. Backspreads are essentially...

At The Money Options
At The Money Options are options with strike price equal to the prevailing stock price. Call or put options with...

Backspread
Backspreads are options trading strategies designed to profit when a stock breakout to either upside or downside. Backspreads are essentially...

Barrier Options
Barrier Options are options that activates or deactivates when certain minimum price or maximum price is reached by the...

Binary Options
Binary Options are options that has only two fixed outcomes; Win A Fixed Amount or Lose All. Its a form of exotic option that ...

Broken Wing Butterfly Spread
Broken Wing Butterfly Spreads are butterfly spreads that transfers all the risk in one leg onto the other, resulting in a ...

Broken Wing Condor Spread
Broken Wing Condor Spreads are condor spreads that transfers all the risk in one leg onto the other, resulting in a ...

Bullish Options Strategies
Bullish Options Strategies are options trading strategies that are designed to profit when a stock moves upwards or that ...

Buy To Close
Buy To Close (BTC) is an options order used to close out your short options positions. It literally means to close a position by ...

Buy To Open
Buy To Open (BTO) is an options order used to buy options contracts. It literally means to open a position by buying it. Yes, options positions can also ...

Calendar Spreads
Calendar Spread is a form of options trading strategy that utilizes options of various expiration months. The term "calendar" comes ...

Calendar Straddle
Calendar Straddle is a neutral options trading strategy that profits in the short term when the underlying stock remains ...

Calendar Strangle
Calendar Strangle is a neutral options trading strategy that profits in the short term when the underlying stock remains ...

Call Broken Wing Butterfly Spread
Call Broken Wing Butterfly Spread is a butterfly spread using only call options and buying out of the money call options that ...

Call Options
Call Options are contracts that give you the right, but not the obligation, to buy the underlying stock (or asset) at a fixed ...

Cash Settled Options
Cash Settled Options are options that delivers only the cash profit when exercised and not the underlying asset. ...

Contract Neutral Hedging
Contract Neutral Hedging is hedging stocks with an equivalent number of put options or call options. 1 contract of ...

Conversion Reversal Arbitrage
Conversion / Reversal Arbitrage is a way of making risk free profit from mispriced options that results in the value of a ...

Deep In The Money Covered Call
Deep in the money covered calls are covered calls that write call options that are deep in the money. Deep In The Money Covered Calls use ...

Delta Neutral Trading
Delta Neutral refers to options positions with an overall position delta value of zero or very near zero. Delta neutral trading is...

Employee Stock Options
Employee stock options are stock options given to employees in addition to their regular compensation (salary + benefits) to ...

European Style Options
European Style Options are options that can only be exercised upon expiration. Unlike its counterpart, the American...

Extrinsic Value
Extrinsic value of an option is the part of its price which decreases as expiration draws near. This is why extrinsic value is ...

Gamma Neutral Hedging
Gamma Neutral Hedging is hedging an options position to zero or nearly zero Gamma so that delta value does not change ...

Greeks
Greeks are 5 mathematical parameters that govern how the price of an option change under various conditions ...

In the Money Options
In The Money Options are options that already have real value, also known as Intrinsic Value, built into their price...

Intrinsic Value
Intrinsic Value of an option is the part of its price which reflects the amount of "built in value" or advantage that its strike price gives ...

Leg
As a noun, legs refer to the component options that make up an options spread. An options spread with two component ...

LEAPS Options
LEAPS Options, short for Long Expiration Anticipation Positions, are options created with extremely long expiration in order to ...

Market Makers
Market makers are individuals or corporations that are charged with the responsibility of creating markets and maintaining ...

Near The Money Options
Near The Money Options are options with strike price near to the prevailing price of the underlying stock ...

Options Contracts
Options contracts are contracts that give their holder the right but not the obligation to buy or sell a specific asset at a ...

Options Expiration
Options Expiration is the day when the lifespan of an option runs out and is resolved according to its terms and conditions ...

Options Settlement
Options Settlement is a process where the obligations of the holder and writer of an options contract are resolved according ...

Options Writing
Options Writing is when a new options contract is created for sale in the marketplace. In other words, it means "shorting" an ...

Out Of The Money Options
Out of The Money Options are options that have no built-in value ...

Physically Settled Options
Physically Settled Options are options that delivers the actual underlying asset when exercised...

Plain Vanilla Options
Plain Vanilla Options are regular standardized exchange traded options that do not contain the kind of exotic terms that are ...

Put Options
Put Options are contracts that give you the right, but not the obligation, to sell the underlying stock (or asset) at a fixed ...

Reward Risk Ratio
Reward Risk Ratio is a ratio which measure the amount of profit per dollar risked. It is calculated by dividing maximum ...

Risk Reversal
Risk Reversal is a way of using options for hedging or leveraged speculation without paying extra costs. This is made possible ...

Short Delta
Short Delta are options or options positions with a negative overall delta value. Options positions that are...

Strike Price
Strike Price is the price at which the underlying stock is to be transacted at when an option is exercised. Hence, it is also ...