Covered Calls
A trader can create a covered call by selling the call options on a security already owned by him. For example, Trader Z owns 1,000 shares of security ABC and then proceeds to sell...
Category: Options
Credit Spread (Options)
Credit spread is also known as net credit spread. A credit spread occurs when two options of the same class are simultaneously bought and sold. These two options are also required to have same...
Put Option
A put or put option is a deal between two parties to exchange an underlying instrument, at a predetermined price (the strike), by a specified date (also referred to as a maturity date). While one party, the buyer of...
Call Option
A call option also referred to as simply call is a financial transaction between two parties, a buyer and seller for this type of option trading. In this contract, the buyer has a right...
Options
An option in finance is a financial derivative product that represents a contract sold by the option writer to another party (option holder). An option contract gives the buyer the right –not the obligation...
Binary options
Binary options have become one of the fastest growing sectors of the finance industry. While the basics of binary options can be learned within a few minutes, there are numerous advanced strategies that traders...
Chicago Board Options Exchange (CBOE)
Established in 1973 by the Chicago Board of Trade, the Chicago Board Options Exchange (NASDAQ: CBOE) is the largest options exchange in USA. Located at 400 South LaSalle Street in Chicago, CBOE offers for...