A call is an option contract that gives the owner the right, but not the obligation, to buy 100... Read More

A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying stock at a specified price (which is known as the strike price of the call) at... Read More

An option contract gives the buyer the right to buy or sell the underlying security at a predefined... Read More

An option contract gives the buyer the right to buy or sell the underlying security at a predefined price for a specified amount of time. That predefined price is known as the strike price. It is the... Read More

Premium is the price that a trader buys or sells an options contract for. It is determined by a... Read More

Premium is the price that a trader buys or sells an options contract for. It is determined by a variety of factors, including: — The intrinsic value of the option. When an option is in the... Read More

Delta is one of the options “Greeks,” a group of values that describe the individual... Read More

Delta is one of the options “Greeks,” a group of values that describe the individual risk factors affecting the price of an options contract. Delta measures how much an option’s... Read More

A put is an option contract that gives the owner the right, but not the obligation, to sell 100... Read More

A put is an option contract that gives the owner the right, but not the obligation, to sell 100 shares of the underlying stock at a specified price (which is known as the strike price of the put) at... Read More

Time decay is an issue that affects all option traders. Depending on your strategy and the actual... Read More

Time decay is an issue that affects all option traders. Depending on your strategy and the actual positions in play, the concept of time decay is either working against you or to your advantage.... Read More

One of the biggest misconceptions about trading involves the idea of risk. No matter how you define... Read More

One of the biggest misconceptions about trading involves the idea of risk. No matter how you define risk in specific terms, the concept always involves the idea of losses. High risk is associated... Read More

Recently, I realized almost everyone I talk to expects tomorrow to look a lot like today.  As... Read More

Recently, I realized almost everyone I talk to expects tomorrow to look a lot like today.  As an investor, that’s a sign I like to see.  People generally seem to believe their jobs... Read More

I spent considerable time this weekend trying to find something bullish to share with you.  In... Read More

I spent considerable time this weekend trying to find something bullish to share with you.  In the end, I decided to share the chart below. It tells us to expect more gains in the stock... Read More

Last week, the Dow Jones Industrial Average finished lower for the fifth week in a row.  That... Read More

Last week, the Dow Jones Industrial Average finished lower for the fifth week in a row.  That sounds important — and it is — but I will get to that in a moment. First, I want to step... Read More