-
How To Determine Intrinsic Value Of A Nadex Spread Option
Friday, June 13, 2014 - 3:33pm | 885Read More...Nadex Spreads are completely different than Nadex Binaries and determining the moneyness for them is also different. Though the definition for moneyness has the same meaning as the intrinsic value of the option, it is also effected by how close the spread is to the underlying market, or the...
-
How To Strangle Profits With An Options Strategy
Thursday, July 25, 2013 - 12:21pm | 937Read More...By: Maximo Cortese Options and their strategies offer many tools to the general investor, but all of the technical jargon can become overwhelming. Let’s look at two of the more helpful strategies, long and short strangles, and break them down for easier consumption. Long Strangles Just like...
-
The Gamma Trade in Options
Friday, June 22, 2012 - 1:40pm | 547Read More...Gamma confuses some options traders because it's a “secondary” indicator. It measures the speed of change in another indicator: delta. Delta measures the rate of premium change in the options related to changes in the underlying (and of course is affected by time and proximity). Gamma measures how...
-
The Delta Neutral Options Trade: Spreads, Straddles, Synthetics
Friday, June 15, 2012 - 11:26am | 786Read More...A delta neutral trade is one in which a long and short option offset one another with net value or cost at or near zero. The theme of delta neutrality can refer to many differently constructed strategies, including spreads (covered and uncovered) and straddles. When an option position is...
