fbpx

Risks

Options offer traders some unique advantages and are undoubtedly a great way to enhance your portfolio. They can also help mitigate losses in the stock market. When traded correctly, options can help a trader have defined risk, but it’s important to remember that...

Theta

All options lose value as time passes, like a produce item at your local grocery store. In options, this is known as time decay, and is measured by the Greek “theta.” Theta is one of the four primary greeks that traders use to describe and analyze various risks to...

Vega

Vega is the greek that represents an option’s sensitivity to implied volatility.   More specifically, vega measures the change in an option’s price for every one percentage point change in implied volatility. So if an option’s vega is 0.10 and its implied...

Equity vs. Index Options

Equity vs. Index Options An option contract is an option to buy or sell an underlying asset over a defined period of time, which could be a stock, index, futures, or commodity. While an equity option gives you exposure to a single stock, index options are financial...

Futures vs. Options

Futures vs. Options Futures and options are types of contracts that allow investors to trade underlying assets at specific prices. Both of these contracts are sold in exchanges, so they are financial products. Investors use these products to turn a profit or to...

THE HOTTEST TRADING IDEAS

Skip to content