The ABC of selling Options

Learn the ABC of selling options. Investors who trade options has to make many decisions like buying or selling options. Which strategy is best considering the market. What is investors assumption about the stock. If an investor is bullish, she can sell a put, whereas if she is bearish, may sell a call. There are many reasons to choose each […]

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What factors does influence Options Pricing

One of the main factors of Options Pricing is the move of the underlying. The more volatile the underlying is the more expensive the option become. There are other factor which determines the price of the option as well As we approach the core of earnings season, and if you are going to trade options around such events, it is vital […]

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Advantage of weekly options

We want to discover the reasons why traders like to use Weekly Options to generate a consistent income. Until a few years ago there were only regular options, with one of more months to expirations.  We will discuss the benefits of weeklies. This post is meant to be a guide for new traders who doesn’t know much about options and […]

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Time Decay is your best Friend

We benefit from options because of Time Decay. Time decay is represented by a Greek term know as Theta. Don’t worry too much about the Greeks for now, we will take a look at it a later on. Theta is a crucial component for options traders that decide to sell options. They will receive options premium to take on risk. […]

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Importance of Extrinsic Value in Selling Options

The definition of Extrinsic Value is the difference between an option’s market price and its intrinsic value. In theory, options should not trade above their Intrinsic Value due to the time value associated with option pricing. Why is Extrinsic Value important for traders?  We will explain in depth what extrinsic value is. Then we will explain why extrinsic value is […]

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The Mystery of Option Extrinsic Value

Once you understand how extrinsic value interacts with intrinsic and time value of an option, you are better suited to select underlying stocks most suitable for your strategy, and to manage stock and option risks more effectively. We like to sell options in order to receive option premium. Option premium contains three different components, each one has its own unique […]

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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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