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what is theta of a stock option

The Greeks: Theta and Vega of a Stock Option

The greeks, such as Theta and Vega, of stock options help us explain the price of the stock option contract. These are theoretical concepts, which are directionally correct, but the option price changes are not guaranteed to follow any exact ‘formula’. In this post we will explore the concept of theta of a stock option and also understand what Vega is. What… Read More »The Greeks: Theta and Vega of a Stock Option

stock order types

Stock Order Types

Stock Order Types As investors, we must know about various tools available to us for controlling the buying and selling price of a stock. Unfortunately, many investors just use the plain ‘buy/sell’ options, not fully utilizing the array of stock order types provided by the investing platform or app. In this post we will go through some great ways to… Read More »Stock Order Types

Levels in Options Trading

Levels In Options Trading

Why are There Levels in Options Trading? Trading Stock Options is risky. Options provide leverage, that can make quick gains for the traders, but can also make quick losses for them. Brokerages set up levels in options trading as a guardrail to prevent unsuspecting traders from placing trades they do not fully understand and potentially losing money. Level 1 allows… Read More »Levels In Options Trading

options trading strategies

Options Trading Strategies

What are the Popular Options Trading Strategies? Few of the most popular options trading strategies are the following: Covered call option strategy. Bull put spread option strategy. Bear put spread option strategy. Primer: Quick read on Call Options and Put Options. The Covered Call The covered call option trading strategy is prevalent among long-term stock investors because it can reduce… Read More »Options Trading Strategies