What is Option Moneyness

In the world of options trading, Moneyness is used to describe the relationship between the current trading price of the security and the strike price of the option For Traders who are buying or selling options is important to know how far an option is ITM or OTM. Whether an option is in-the-money or out-of-the money it tells the holder […]

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Selling puts for huge income

Selling puts is an essential part of options strategies. Selling a put is a strategy where an trader writes a put contract. By selling the contract the put buyer has the right to sell stocks for a certain price. Selling options is advantageous to an trader, because the option trade has a higher probability of profit and she will receive […]

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What is a stock option

Stock Option Contracts comes in several ways. In a typical option contract, the seller agrees to keep an offer open for a certain amount of time. A potential buyer has to give the seller some payment in exchange. In other words in an option contract, the seller is agreeing to keep the “option”open for the buyer. An option contract gives […]

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What is the Cost Basis

cost basis

Cost Basis can be best explained by the use of an everyday live example. Imagine that you are a broker who buys a house, renovate it and sell it for a higher amount. You have purchased the house for a certain amount of money. After that you will buy some paint and wall paper to do a make over. Then […]

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