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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

How to Buy a Call Option (Stock Option)? Easy to Follow Step-by-Step Guide

What is a Call Option? Before we go to the ‘How to buy a call option’ guide, let’s quickly recap what a call option is. As the name suggests, a call ‘option’ is a contract that gives you the option of buying 100 shares of a stock at a pre-determined price. You can choose to exercise the option or choose… Read More »How to Buy a Call Option (Stock Option)? Easy to Follow Step-by-Step Guide

stock options

Stock Options

What Are Stock Options? Stock options are contracts that give investors the right (but not obligation) to buy or sell a stock at a certain price, before a certain date. Simply put, it’s a method of trading stocks on leverage. For example, when you buy a call option, you buy the contract that will allow you to buy 100 shares… Read More »Stock Options

put options

Put Options

What are Put Options? Put Options: You buy put options when you believe the stock will go down. A put option is a contract that locks in a selling price of a stock for you until a given date. Generally, a put option is a contract that allows you to shares 100 shares of a stock. Trading options is like… Read More »Put Options