Options

Why Does Implied Volatility Matter?

Why Does Implied Volatility Matter?

The inputs needed to price a stock option include: number of days to expiration, risk-free interest rate, volatility, the price of the underlying stock, dividend date and amount, and the option strike price. Out of the all the inputs,  only volatility is derived by...
Understanding Option Spreads

Understanding Option Spreads

Some refer to options trading as pure gambling, while others see it as a way to hedge an equity position and speculate on a trade through a risk-defined spread. You see, there are some who will tell you that buying option premium is a better strategy than selling...
The Players In The Options Market

The Players In The Options Market

According to the Options Clearing Corporation, more than 3.3 trillion equity option contracts were traded on 14 different exchanges. With that said, five exchanges accounted for nearly 70% of the volume. Serious option traders pay very close attention to how much...
Look at How This Trader Made $232,000 with Options

Look at How This Trader Made $232,000 with Options

Make no mistake about it. If there are opportunities to make money, traders will look into them. Now, something that has garnered a fairly decent amount of attention over the last couple of years has been the tracking of options order flow. More specifically, “unusual...
How To Use Options To Make Better Equity Trades

How To Use Options To Make Better Equity Trades

Crude oil futures prices, along with equity names related to energy have been on an absolute tear lately. This largely came off the announcement that OPEC reached to an agreement to make production cuts. Crude futures nearly gained 10% the day the announcement was...