One common way to help increase investment returns is to use deep in the money call options. These options have strike prices much lower than the current market price of the asset, giving them high ...

ITM options are more conservative, while more aggressive traders may prefer OTM contracts When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in ...

An option can be either in the money, out of the money or (very rarely) at the money. These three different statuses for options indicate the relationship of the option’s strike price and the price of ...

Options trading can generate big profits, or big losses, through financial leverage. The leverage allows investors to protect their portfolio while giving speculators an opportunity to amplify profits ...

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...

When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Corrections and market downturns inevitably happen, so the key is to prepare for these before ...

A strangle is a popular options strategy that involves holding both a call and a put on the same underlying asset. It yields ...

QQQY offers a massive yield but has experienced consistent price and NAV decline since inception. QQQY's at-the-money option strategy limits upside potential and may not capture price gains of the ...

Buying cheap put options on horrible stocks to hedge long positions can be profitable. Put options offer unlimited gains and limited losses compared to short positions, making them a possibly better ...

When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option. While the goal for "vanilla" buyers is ...