To construct a short put spread, you would first identify a chart level that has served as support in the past A long put spread is a bearish options strategy that is usually initiated when the trader ...

A put option, also known as a put, is a right given to a holder to sell an underlying stock at a decided price before a certain date. To understand the definition completely, it is important to ...

The election is quickly approaching, which will no doubt leave many to speculate on how the market will react, regardless of the outcome. With that being said, a return to the basics may help novice ...

Options assignment is a process in options trading that involves fulfilling the obligations of an options contract. It occurs when the buyer of an options contract exercises their right to buy or sell ...

Bear put spreads limit loss to net debit, capping maximum at difference between two puts. This strategy suits investors expecting a slight stock/index drop due to specific events. Profit potential is ...

As an options writer, there will be times you will find your position to be In-The-Money, or ITM, as expiration approaches. This means the stock price is below the strike price you picked to establish ...

An options contract gives you the right, but not the obligation, to buy or sell an underlying asset at a predetermined price on or before a specified date. This predetermined amount is known as the ...

The option Greeks (Delta, Gamma, Theta, Vega and Rho) are option trading indicators to predict price changes and manage risk in their trading strategy. Each Greek measures a different aspect of an ...

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. In the realm of Indian finance, ...

Options can be used to express specific trading views, but before diving into options trading, you must understand how an option premium works — a vital component that can make or break your trading ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...