Recent Articles and Videos

Trading Naked Calls & Puts

Tuesday, October 2, 2007
Filed Under Intermediate Options Trading 

An option is a derivative trading product that is best used by investors as a hedging tool providing profit protection and profit enhancement. Although it is a powerful risk management tool, it can also be used effectively as a stand-alone trading vehicle. Under the proper conditions, options do not have to be paired with stock…click to read more.

Today’s tickers: HLF, CVS, AKS, GRMN, WAG, C, RIO, NVT & EWH WAG – Walgreens share price took a smack on the chin despite a bullish start to the week. The near-15% slump in its shares created a fertile battleground for options traders thanks to the presence of liquidity and volatility. The company announced a…click to read more.


Monday, October 1, 2007
Filed Under Intermediate Options Trading 

Parity – When we discuss parity in terms of options, we say that parity is the amount by which an option is in the money. Parity refers to the option trading in unison with the stock. This also means that parity and intrinsic value are closely related. When we say that an option is trading…click to read more.

Market Report – September 30, 2007

Monday, October 1, 2007
Filed Under Market Snapshots 

The third fiscal quarter ended on Friday on a bearish note, although US equities are once again flirting with lofty all time highs.  The lagging volume and consolidating technical pattern of all the major markets, coupled with a slight move to the downside on the last day of a bullish quarter could lead some to…click to read more.


Monday, October 1, 2007
Filed Under Intermediate Options Trading 

Premium is the total amount of money (price) you pay for an option. So, if the Microsoft (MSFT) May 65 calls cost you $1.50 then the $1.50 is the amount of the premium of the option. The total price of an option (premium) consists of two components. Those two components are intrinsic value and extrinsic…click to read more.

Options Trading Strategies

Sunday, September 30, 2007
Filed Under Intermediate Options Trading 

Webster’s Dictionary defines the term strategy as “ 1 a) the science of planning and directing larger scale military operations, specifically (as distinguished from TACTICS) of maneuvering forces into the most advantageous position prior to actual engagement with the enemy b) a plan or action based on this. 2 a) skill in managing or planning,…click to read more.

Put Option

Saturday, September 29, 2007
Filed Under Intermediate Options Trading 

A put option is a contract between two parties (a buyer and a seller) whereby the buyer acquires the right but not the obligation to sell a specified stock or other underlying instrument at a specified price by a specified date. The seller of a put option assumes the obligation of taking delivery of the…click to read more.

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