Recent Articles and Videos

An at-the-money option has both advantages and disadvantages over stock and in-the-money options. First, the at-the-money option will be cheaper then both the stock and the in-the-money option. So there is less capital requirement and less total risk. Remember, when buying an option, you can only lose what you spend. The problem is the amount…click to read more.

Today’s tickers: SLM, WAG, GRMN, RIO, FCX, NEM, AA, MFE, PDLI, CREE & CBH SLM – News today that an investment consortium led by J.C. Flowers and including Bank of America and JP Morgan Chase would offer $50 per share for Sallie Mae (SLM) in combination with warrants for outstanding shares, sent the company’s fortunes…click to read more.

A Put Option

Tuesday, October 2, 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.

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.

Finding Great Trades

Free instant access to 80 minutes of pure options trading mastery.

* Required

Copyright © 2004 - 2012 by Options University™ All Rights Reserved