Recent Articles and Videos


Premium

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.

Today’s tickers: JBHT, WYNN, VIX, AL, WHR, SYNA, AEO, CVS, RAD, JNPR & TZOO JBHT – Conjecture about consolidation in the transport industry and comments from the analyst community on the “undervalued” nature of the sector as a whole spun options in JB Hunt Transport (JBHT) into a momentum web earlier this week. While the…click to read more.

What Is A Premium?

Friday, September 28, 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 Q&A – September 28th, 2007

Friday, September 28, 2007
Filed Under Options Q&A's 

Q: If you buy a call and then sell it back into the market, are you in effect then writing a call and is all of the intrinsic value profit? For example, you buy 1 abc option for $200 at a strike price of $40 and the stock rises to $45. Is your total profit…click to read more.

Parity

Friday, September 28, 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.

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