Jun 23, 2017
In options trading, the term 'in the money' is used quite often to describe the position of an underlying in relation to the strike price of a stock option. For experienced traders, the term 'in the money' is inherently understood, however for newer traders or investors learning how to trade options, this term can be a bit confusing.
Jun 14, 2017
Investors will typically buy call options when they expect that a underlying's price will increase significantly in the near future, but do not have enough money to buy the actual stock.
A call is an option contract that gives the purchaser the right, but not the obligation, to buy stock at a certain price. The price specified is called the strike price. If the stock goes up, the value of the call contract also goes up. If the stock goes down, the value of the call option goes down.
Feb 21, 2017
Implied volatility rank (or IV rank for short) is a newer concept in the options trading industry. Any option traders knows what implied volatility is and how it relates to the pricing of options, but few understand what IV rank is. IV rank is a measure that brings relativity to implied volatility.
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