Every successful business has some advantage over its competitors, and the options trading business is no exception. In this post, we’ll explain our edge in options trading; understanding our strategy is one of the most important steps you can take towards becoming a successful options trader. Since successful options traders operate a lot like insurance […]
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The options expiration and assignment process can often be confusing for new options traders. In this article, we will clearly explain the entire options expiration and assignment process to give you the knowledge and confidence to get started in options trading. Options Expiration Basics Option contracts have a finite life. There is a specified time […]
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Selling Puts for Beginners: How to Buy Stocks at a Discount If you want to understand how to buy stocks at a sizable discount AND get paid for doing so, learn how to sell put options. In this article, we’ll help you get started with this simple but powerful strategy. If you missed our article […]
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So, what is an option chain? Reading an option chain, or option pricing table, is a fundamental skill to master before stepping into any option trade. In this post, we’ll show you how to read an option chain step-by-step. An option chain, simply put, is a list of all of a stock’s option contracts which […]
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Like any formal agreement between two parties, option contracts clearly delineate all of the parameters of the contract between buyer and seller. In this article, we’ll explain each of the five key option contract specifications in detail. Here is an example of an option contract: XYZ February 50 call for 1.50 The pieces of this […]
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Understanding Option Greeks As a beginning options trader, you have likely heard of “Option Greeks.” The Greeks are fundamental metrics we use to make informed trading decisions and to gauge our trades, portfolio risk, and profit potential. The Greeks measure how an option price or premium will change in response to changes in any of the […]
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Understanding option pricing is the key to success in this business; if you understand the effects of implied volatility and time decay on option prices, you’ll understand our edge in trading. In this article, we’ll discuss option pricing using the Black-Scholes model, explaining how it can be simplified into two concepts: intrinsic and extrinsic value. […]
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Options trading can seem quite complicated at first only because of all the lingo involved. This is perfectly normal and here at Option Posts, we want to help clear any confusion and help take you to the next level of trader. In this article we define and explain the 66 most common option trading terms […]
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3 Key Advantages of Selling Options vs Buying Options When trading options, you can either be the buyer or seller of the option contract. You may be wondering, which is better? Buying or selling options? In this article, we are going to explain the three advantages of selling options. When you realize how the market […]
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