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Knowledgebase : Options
Hi Everyone. I may have been a bit too subtle with this piece of advice, so I'll make it loud and clear now … If the straddles aren’t fulfilling the ideal criteria, then stick to trading flags!! There are so many consistent and safe profits to be m...
Guy Cohen Hi Everyone. Just a quick note to say that straddles are looking a bit on the pricey side again this earnings season, so it's a good idea to stick to what we know works nearly all the time … ie just trade the flag patterns long and short as in ...
Guy Cohen Theta T The characteristic of option prices to change purely as a result of the passage of time is known as time decay. Theta is a measure of how time decay affects the option premium. As such, theta is nearly always negative for bought options...
The Bid-Ask Spread is the amount by which the Ask exceeds the Bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it. Full...
There are seven factors that influence an option’s price: 1. The type of option (call or put) 2. The price of the underlying asset 3. The exercise price (or strike price) of the option 4. The expiration date 5. Volatility – Implied a...