Options spreads involve two or more different positions, and can be deployed to fit a wide range of strategic approaches, market outlooks and risk profiles.
The Greeks provide investors and traders with insight on given options positions’ response to potential scenarios in the underlying stock, but some are arguably more important than others.
A calendar spread involves simultaneously buying and selling options with the same strike price but different expiration months. Calendars perform optimally when the underlying hovers close to the strike of the near-month short option.
Options and futures are unique because unlike many other securities these derivatives have finite lives, and therefore specific expiration dates.
Cryptocurrency volumes on futures exchanges are rising and this emerging sector is now opening up to a variety of new futures trading/investing approaches.
Earnings for the first quarter of 2020 are only recently in the books, but savvy traders are already looking toward the second quarter, which don’t kick off until mid-July. One reason for having a longer view at this time is because earnings this year have been especially unpredictable, and going by the first quarter, pretty … Continued
Learn the idiosyncrasies of intramarket spreads—trades where an investor simultaneously buys and sells the same futures contract in different expiration months Professional traders seeking commodity exposure often make futures their preferred investment vehicle because of their capital efficiency, exactness in tracking an underlying spot market and deep liquidity. But unlocking the benefits of futures can … Continued
The term “single stock” doesn’t refer to a security that spends its free time swiping right and left on Tinder. No, “single stock” as a concept evolved only after financial products that incorporated exposure to more than one stock were conceived—products like stock indexes, exchange-traded funds (ETFs), and mutual funds. That means a single stock … Continued