Advanced Topics – Optionology

(SET) and Index Option Expiration

2011-10-22T09:04:12-04:00October 22, 2011|

  A lot of investors like to incorporate index options into their strategies because they are more stable and easier to predict.  These are usually better for using neutral strategies like iron condors.  An index option is simply an option based on one of the major indexes such as: S&P [...]

Top 8 Mistakes People Make Trading Options

2011-10-16T12:09:43-04:00October 16, 2011|

1.  Buying out of the money options because they are cheap – Out of the money options look tempting to buy because they cost a lot less than in the money options.   However a quick look at the deltas of the options will tell you that your probability of them [...]

Using Options to Pick Up Stock

2011-10-16T12:07:06-04:00October 16, 2011|

Most people will use options as a means of speculation or a means to hedge.  Both of these strategies have their place; however what people tend to not use options for is to pick up stock.  Using options to go long on a position is a great way to make [...]

The Greek Cheat Sheet

2011-10-16T12:03:05-04:00October 16, 2011|

Strategy Delta Gamma Theta Vega Long Stock + N/A N/A N/A Short Stock - N/A N/A N/A Long Call + + - + Long Put - + - + Short Call - - + - Short Put + - + - Long Straddle N/A + - + Long Strangle + [...]

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