Dec 29, 2012 | Investment Basics, Option Trading Basics, Stock Investing, Stock Option Strategies
When studying investment basics, the term slippage has two applications. In general, it means having a trade executed at a price less favorable to the trader. Let’s look at the two areas where we may see this term used: An order is executed at a worse-than-expected...
Nov 17, 2012 | Option Trading Basics, Options Trade Execution
There are two ways to enter a covered call position. The first is called legging-in where the stock is purchased and then the option is sold. Two distinct trades are executed. The second is known as a buy-write order where the security purchase and option sale is...