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Minimizing Your Risk with Vertical Debit Spreads
August 14, 2019
Bearish Outlook

Minimizing Your Risk with Vertical Debit Spreads

Tony Zhang

What are debit spreads? Placing a trade on the direction of a stock using options typically requires purchasing a call or put option. When purchasing options, the largest headwind is erosion of the extrinsic value of an option over time. This is measured by the option’s theta. For a strategy to be profitable, one must predict...

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5 days ago
Options Insights: Top 3 Strategies to Generate Income with Options
June 27, 2019
Concepts

Options Insights: Top 3 Strategies to Generate Income with Options

Tony Zhang

Want to learn more about Top 3 Strategies to Generate Income with...

652
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1
2 months ago
Trading your first option
June 11, 2019
Other

Trading your first option

Tony Zhang

Want to learn more about trading your first option?...

502
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2
2 months ago
Cash Secured Puts: Benefits of Selling Puts
May 17, 2019
Other

Cash Secured Puts: Benefits of Selling Puts

Tony Zhang

Want to learn more about Cash Secured Puts and its...

421
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3 months ago
Monthly Option Insight
April 29, 2019
Other

Monthly Option Insight

Tony Zhang

Want to learn more about Generating Income using Covered Calls? Sign up for a free webinar May 7th 2019 @ 4:15pm ET....

527
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2
4 months ago
The Greeks: Theta
March 28, 2017
Concepts

The Greeks: Theta

Martin Noël

This week, we will look at another Greek variable: theta. Theta measures the change in the price of an option following a change in the time remaining to its expiration. You will recall that an option’s premium has two components: intrinsic value and time value. But since an option that has reached expiration has run out of...

1146
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2 years ago
Will Volatility Revert to the Mean?
March 22, 2017
Other

Will Volatility Revert to the Mean?

Hans Albrecht

A crucial foundation for understanding how option volatility works is the concept of ‘mean reversion’. For a period, stocks can go up and stay up, and they can conversely go down and stay down. But option pricing will generally have trouble staying high or low for an extended length of time. So why do prices eventually move...

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2 years ago
The Greeks: Delta
March 17, 2017
Concepts

The Greeks: Delta

Martin Noël

In the last few articles, we have seen that there are several variables that have an impact on the value of options. This table illustrates how an increase in one of the variables affects the values of call and put options. As you can see, with all other things being equal, when one of the variables moves, we should expect the...

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2 years ago
A Wall of Worry
February 23, 2017
Other

A Wall of Worry

Jason Ayres

There’s an old saying that “markets climb a wall of worry and slide down a slope of hope”. I think many would agree that although both U.S. and Canadian equities continue climb, there’s no shortage of apprehension when discussing how much further the markets can go with out some sort of a correction. One...

1294
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2 years ago
Dividend Impact on Options’ Intrinsic Value
February 06, 2017
Other

Dividend Impact on Options’ Intrinsic Value

Martin Noël

As we mentioned in earlier articles, an option’s intrinsic value is the premium value related to the difference between the stock’s price and the strike on the option. VIoa = max(S – X; 0) VIov = max(X – S; 0) In the previous article, we saw that the evolution of interest rates had an impact on the actual value...

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3 years ago