Category Archives for "Getting Started"

Feb 20

Option Moneyness [Explained]

Getting Started

Options are classified as In-the-Money (ITM), Out-Of-The-Money (OTM), and At-The-Money (ATM), three categories which describe the position of the option strike price relative to the current stock price. These categories are called option “moneyness.” Let’s take a look at these moneyness categories with examples. In-the-money (ITM) An option contract is said to be in-the-money when […]

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Feb 14

How to Read Option Profit/Loss Diagrams

Getting Started , Option Posts Insights

reading option pl diagrams

Option profit/loss diagrams visually represent an option strategy’s profits or losses as the different inputs into the pricing model change. As you dive deeper into more complex options strategies with multiple buying and selling options, these diagrams will be the key to seeing how to profit from time decay and volatility (factors unrelated to stock […]

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Feb 12

What Is Our Edge In Options Trading?

Getting Started , Option Posts Insights

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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Feb 05

How To Read An Option Chain

Getting Started , Option Posts Insights

how to read an option chain

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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