06) Order Actions
In this lesson, we will be taking a look at the different types of order actions. If you’re new to options trading, these can be a bit confusing at first, but I assure you...
05) Moneyness
In options trading you’ll hear these phrases a lot: “in the money”, “at the money” and “out of the money”. These are what is known as “moneyness”. They all refer to the relationship between…...
04) Expirations
In this lesson we will be going over what expirations are and the different types of expirations. There are 4 groups of expirations, Weekly’s, Monthly’s, Quarterly’s and LEAPs. Weekly Expirations expire on the close of trading...
03) Strike Prices
In this lesson we’ll be talking about “strike prices”. A strike price is defined as the price at which the given options contracts may be exercised. With call contracts, it’s the price at which...
02) Calls and Puts
This is just going to be a quick overview to get you started. When a trader believes a stock will go up, they would buy Calls. If they believe it will go down, they...
01) Options Chain
As an options trader, you’ll be looking at an options chain very often. So, it’s good to have a strong understanding of each of its common parts. Let’s start out by looking at AAPL’s...
Credit Spread (Bonds)
Credit spread is also known as yield spread. Credit spread refers to the difference in yield of different securities. Such difference in yield arises due to the difference in credit quality of different instruments....
Credit Card
A credit card is a system of payment that lets the cardholder to pay for products and services based on the promise to pay for them. The credit card is based on the revolving...
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...
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...
Whole Life Insurance
Whole life insurance refers to a life insurance policy that is valid for the insured’s entire life. In most cases, whole life insurance requires the payment of premium every year. In Commonwealth of Nations,...
Home Equity Loan
Home equity loan refers to a loan in which the borrower utilizes the equity or ownership in his/her home as a collateral. Borrowers generally take out home equity loans to fund significant expenses like...
Term Deposit
Term Deposit refers to a deposit kept with a bank for a fixed term. The maturities for term deposit range from between a month to a few years. Once a customer buys a term...
Federal Student Loan Consolidation
In the U.S., the Federal Direct Student Loan Program (FDLP) includes consolidation loans that let students to combine Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt. This scheme helps reducing monthly repayments and increases the...
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...