STMP Options Play

Trade idea: STMP The put contract at the $165 Jan 15 strike price has a mid point of $1110. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $165 but will also collect the premium, putting the cost basis of the shares at $153.90 (before broker commissions). …

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Premium Selling and the Triple Income Wheel Strategy

Selling option premium and or running what is called the wheel strategy also sometimes called the triple income strategy is a very popular strategy to generate passive income with out much risk. To begin the strategy we start off with selling a cash secured put in a stock you would like to own.  You pick …

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Call options

Call options:  The buyer of the call option has the right to buy the asset at a specific price on or before the expiration date.   The seller of the call option has the obligation to sell the asset to the buyer at said price on or before the expiration date. The price of the contract known as Premium is …

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Put options

Put options:  The buyer of the Put option has the right to sell the asset at a specific price on or before the expiration date. The seller of the put option has the obligation to buy the asset from the buyer at the specified price on or before the expiration date. The price of the contract known as Premium …

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What are option contracts? (The Basics)

An option is a contract that allows a buyer the right to buy or sell an underlying asset or financial instrument at a specified strike price prior to or on a specified date.  The seller has the corresponding obligation to fulfill the transaction if the buyer “exercises” the option.  Each option contract typically represents 100 …

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Understanding the Option Greeks (Easy Guide)

The Greeks are an important tool for those actively trading options contracts.   Basic understanding of the Greeks will give you an edge over other options traders. The most common of the Greeks are: Delta, Gamma, Theta, Vega Delta – Measures the rate of change with respect to changes in the stocks price. Calls have positive …

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