put

Every stockholder faces this dilemma: you bought stock several months ago and recently the price jumped, perhaps even more than you ever dared hope. Now what? The dividend yield is very attractive and you would like to hold onto shares. The fundamentals are strong and steady. You believe long-...

Among the “Greeks” the most valuable for options trading (and specifically for timing of trades) is the delta. This indicator compares likely change in option value relative to change in the value of the underlying. The higher the delta level, the more likely the premium will move pre than...

The problem for anyone in the market is the threat of loss. Owning stock means you risk a decline in the price, and this is where some specific options-based protective strategies are exceptionally valuable. One such strategy is the collar. The collar has three parts: 100 shares of stock, a...

We have received a few inquiries today and yesterday like this: “I was wondering if you might share your thinking with regard to adding a put spread to balance the call spread on our SPY position expiring April 16 [creating an Iron Condor]. Currently we're looking at a profit on the call spread,...

There are six factors that together dictate the price at which all options trade at, these include: 1. Strike Price: aka the “Strike,” is the price at which the owner of an option is allowed exercise their right. In the case of a call option, they are allowed to purchase the security at the strike...