Oct 14, 2015 | Ask Alan, Covered Call Exit Strategies, Exchange-Traded Funds, Exit Strategies, Fundamental Analysis, Investment Basics, Just Alan, Option Trading Basics, Options Calculations, Options Trade Execution
Sep 26, 2015 | Investment Basics, Option Trading Basics, Options Calculations
The Greeks are a mathematical means of estimating the risk of stock options. Delta measures the change in the option price due to a change in the stock price, Gamma measures the change in the option delta due to a change in the stock price, Theta measures the change...
Sep 19, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
When we sell covered calls or cash-secured puts we understand the factors that go into the premiums we receive: The option’s exercise price The current price of the underlying The risk-free interest rate over the life of the option Dividends, when applicable The...
Sep 5, 2015 | Covered Call Exit Strategies, Exchange-Traded Funds, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
Selling out-of-the-money puts and using top-performing SelectSector SPDRs can be combined to design an extremely defensive option-selling strategy in a volatile market environment like we are currently experiencing. Using Inverse Exchange-traded Funds is another...
Aug 8, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Put-selling, Stock Option Strategies
The index short put strategy is a form of selling cash-secured puts. It is a bullish strategy with the goal of generating premiums selling put options that expire worthless. Traditionally, at-the-money strikes are sold. As opposed to using stocks and exchange-traded...
Aug 1, 2015 | Covered Call Exit Strategies, Exit Strategies, Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Rolling options is an important exit strategy choice when selling covered call and put options. Options can be rolled up and down in the same contract month or a future contract month. For the most part, we roll down in the same contract month and roll out or...