Blog

The Sell Put And Buy Call Strategy | A Synthetic Long Stock

The Sell Put And Buy Call Strategy is an example of a synthetic stock options strategy: using call and puts options to mimic the performance of a position, usually involving the purchase of a stock. We saw this when looking at the synthetic covered call strategy elsewhere. In this case, what is being mimicked is […]

Further Reading On Options Trading...

Options Trading Strategy: Long Call

A long call option strategy is the purchase of a call option in the expectation of the underlying stock rising. It is delta and theta positive. Introduction Options can provide ...
Read More

Out Of The Money (OTM) Options Explained

Out of the money (OTM) options: where the exercise price for a call is more than the current underlying security’s price (or less for a put). This is an example ...
Read More

Implied Volatility

What Is Implied Volatility? Implied volatility (IV) is one of the most important concepts in options trading. Unfortunately it’s also one of the most complex. Therefore, let’s build up the ...
Read More

Protective Put: This Defensive Put Option Strategy Explained

How Can The Protective Put Strategy Help A Trader? Introduction To Protective Puts The protective put (sometimes called a married put) strategy is one of the simplest, but most, popular, ...
Read More

Options Theta Explained: Price Sensitivity To Time

Options theta measures option price sensitivity to time. Time Decay & Options Theta All things being equal options lose value over time - so called 'time decay' - and theta ...
Read More

Puts and Calls: Stock Options Explained

What Are Puts and Calls? We've seen before exactly what options are, how they work and their function. Here we go further and explore the two main flavour of options ...
Read More

Volatility Skewness | IV Skew In Options

Volatility skewness, or just skew, describes the difference between observed implied volatility with in-the-money, out-of-the-money, and at-the-money options with the same expiry date and underlying. It occurs due to market ...
Read More

Options Trading Strategy: Long Put

What Is A Long Put? A long put option strategy is the purchase of a put option in the expectation of the underlying stock falling. It is delta negative and ...
Read More

Options Trading Strategy: Bear Put Spread

Introduction Options can be an extremely useful tool for short-term traders as well as long-term investors. Options can provide investors with a vehicle to bet on market direction or volatility, ...
Read More

In The Money (ITM) Options Explained

In the money options are those whose strike price is less (for call options) or more (for put options) than the current underlying security price. Options provide the right to ...
Read More

Options Trading Strategies: Call And Put Backspreads

Backspreads: Extreme Bullish Or Bearish Options Trading Strategies What Are Backspreads? A backspread is very bullish or very bearish strategy used to trade direction; ie a trader is betting that ...
Read More

Options Greeks: Theta, Gamma, Delta, Vega And Rho

The options greeks - Theta, Vega, Delta, Gamma and Rho - measure option price sensitivity to changes in time, volatility, stock price and other parameters. In the world of finance, ...
Read More

How To Learn Stock Options Trading: Stock Options For ‘Dummies’

Would you like to learn stock options trading but don't know where to start? Well we've got your back and designed this step by step guide on how to educate ...
Read More

Stock Option Strike (Exercise) Price Explained

The option strike price (also known as the exercise price) is a term used in options trading. Options are derivatives. These financial instruments are ‘derived’ from another underlying security such ...
Read More

Options Vega Explained: Price Sensitivity To Volatility

Options Vega is the measure of an option’s price sensitivity to changes in volatility. It is the expected change in options price with a 1 point change in implied volatility ...
Read More

Can You Sell A Call Option Before It Hits The Strike Price?

Question To Be Answered: Can You Sell A Call Option Before It Hits The Strike Price?

Further Reading On Options Trading...

Covered Calls Options Strategy Guide

Introduction To Covered Calls Covered calls have always been a popular options strategy. Indeed for many traders, their introduction to options trading is a covered call used to augment income ...
Read More

Options Trading Strategy: Bear Put Spread

Introduction Options can be an extremely useful tool for short-term traders as well as long-term investors. Options can provide investors with a vehicle to bet on market direction or volatility, ...
Read More

Options Trading Strategy: Long Call

A long call option strategy is the purchase of a call option in the expectation of the underlying stock rising. It is delta and theta positive. Introduction Options can provide ...
Read More

The Synthetic Covered Call Options Strategy Explained

What Is A Synthetic Option Strategy? A synthetic covered call is an options position equivalent to the covered call strategy (sold call options over an owned stock). It consists of ...
Read More

Options Trading Strategy: Bull Call Spread

The Bull Call Spread: A Bullish Options Strategy Introduction The bull call spread is a simple strategy that can be used by novice options traders to bet on higher prices ...
Read More

Options Trading Strategy: Long Put

What Is A Long Put? A long put option strategy is the purchase of a put option in the expectation of the underlying stock falling. It is delta negative and ...
Read More

Calendar Spread

The Calendar Spreads Options Strategy What is a Calendar Spread? Intro Calendar Spreads are one of the key non-directional strategies used by options traders to make money in any market ...
Read More

Options Trading Education

Options trading is a potential lucrative sideline for those willing to put in the effort. Epsilon Options is here to help you learn the skills you’ll need to become a ...
Read More

Straddle Spread: Learn This Options Trading Strategy

Options Trading Strategy: Straddle Spread Introduction The straddle spread is a relatively simple options strategy that can be used under different market scenarios. However its most normal use is a ...
Read More

Buy to Open vs Buy to Close

What is Buy to Open vs Buy to Close? We look at these two similar, but not exactly the same, concepts. There are two ways you can participate in the ...
Read More

Options Trading Strategy: Butterfly Spread

Introduction To Butterfly Spreads Options can provide traders and investors a tool for expressing different market opinions. Options can be used to make trades based on market direction, to bet ...
Read More

Volatility Skewness | IV Skew In Options

Volatility skewness, or just skew, describes the difference between observed implied volatility with in-the-money, out-of-the-money, and at-the-money options with the same expiry date and underlying. It occurs due to market ...
Read More

Options Theta Explained: Price Sensitivity To Time

Options theta measures option price sensitivity to time. Time Decay & Options Theta All things being equal options lose value over time - so called 'time decay' - and theta ...
Read More

Options Spreads: Put & Call Combination Strategies

Options Combinations Explained Options spreads involve the purchase or sale of two or more options covering the same underlying stock or security (ref). These options can be puts or calls ...
Read More

Options Greeks: Theta, Gamma, Delta, Vega And Rho

The options greeks - Theta, Vega, Delta, Gamma and Rho - measure option price sensitivity to changes in time, volatility, stock price and other parameters. In the world of finance, ...
Read More

Bull Call Spread vs Bull Put Spread

Here’s the bull call spread vs bull put spread head to head. Which of these bullish strategies is better? We investigate…

Further Reading On Options Trading...

Options Trading Strategy: Bear Put Spread

Introduction Options can be an extremely useful tool for short-term traders as well as long-term investors. Options can provide investors with a vehicle to bet on market direction or volatility, ...
Read More

Options Trading Education

Options trading is a potential lucrative sideline for those willing to put in the effort. Epsilon Options is here to help you learn the skills you’ll need to become a ...
Read More

Calendar Spread

The Calendar Spreads Options Strategy What is a Calendar Spread? Intro Calendar Spreads are one of the key non-directional strategies used by options traders to make money in any market ...
Read More

Options Trading Strategy: Long Call

A long call option strategy is the purchase of a call option in the expectation of the underlying stock rising. It is delta and theta positive. Introduction Options can provide ...
Read More

Covered Calls Options Strategy Guide

Introduction To Covered Calls Covered calls have always been a popular options strategy. Indeed for many traders, their introduction to options trading is a covered call used to augment income ...
Read More

The Synthetic Covered Call Options Strategy Explained

What Is A Synthetic Option Strategy? A synthetic covered call is an options position equivalent to the covered call strategy (sold call options over an owned stock). It consists of ...
Read More

Zero Cost (Costless) Collar Explained

What Is A Zero Cost Collar? A costless, or zero cost, collar is an options spread involving the purchase of a protective put on an existing stock position, funded by ...
Read More

Stock Option Strike (Exercise) Price Explained

The option strike price (also known as the exercise price) is a term used in options trading. Options are derivatives. These financial instruments are ‘derived’ from another underlying security such ...
Read More

Options Trading Strategy: Butterfly Spread

Introduction To Butterfly Spreads Options can provide traders and investors a tool for expressing different market opinions. Options can be used to make trades based on market direction, to bet ...
Read More

Implied Volatility

What Is Implied Volatility? Implied volatility (IV) is one of the most important concepts in options trading. Unfortunately it’s also one of the most complex. Therefore, let’s build up the ...
Read More

How Options Work: Trading Put And Call Options

Learning how options work is a key skill for any trader or investor wanting to add this to their arsenal of trading weapons. It’s really not possible to trade options ...
Read More

Options Theta Explained: Price Sensitivity To Time

Options theta measures option price sensitivity to time. Time Decay & Options Theta All things being equal options lose value over time - so called 'time decay' - and theta ...
Read More

Protective Put: This Defensive Put Option Strategy Explained

How Can The Protective Put Strategy Help A Trader? Introduction To Protective Puts The protective put (sometimes called a married put) strategy is one of the simplest, but most, popular, ...
Read More

Put Call Parity

Put Call Parity Introduction Options trading can be relatively simple and can also become highly technical. One of the most important basic concepts when it comes to trading options is ...
Read More

Volatility Skewness | IV Skew In Options

Volatility skewness, or just skew, describes the difference between observed implied volatility with in-the-money, out-of-the-money, and at-the-money options with the same expiry date and underlying. It occurs due to market ...
Read More

Options Trading In Retirement: The Best Options Strategies For Seniors & Retirees

Options trading is perfect for retirement investing for retirees and seniors, if the right strategies such as the protective put and the covered call, are used.

Further Reading On Options Trading...

Options Brokers Reviews

How To Choose The Best Options Broker There are several things an option trader needs to look for in an options broker. However, whilst most traders will need most, if ...
Read More

Options Trading Strategies: Call And Put Backspreads

Backspreads: Extreme Bullish Or Bearish Options Trading Strategies What Are Backspreads? A backspread is very bullish or very bearish strategy used to trade direction; ie a trader is betting that ...
Read More

Options Gamma Explained: Delta Sensitivity To Price

Gamma is the options greek measuring the sensitivity of delta to changes in stock price. Option traders tend to find it relatively easy to understand how the first-order Greek metrics ...
Read More

Options Delta Explained: Sensitivity To Price

Options Delta is the measure of an option’s price sensitivity to the underlying stock or security’s market price. It is the expected change in options price with a 1c change ...
Read More

Straddle Spread: Learn This Options Trading Strategy

Options Trading Strategy: Straddle Spread Introduction The straddle spread is a relatively simple options strategy that can be used under different market scenarios. However its most normal use is a ...
Read More

Options Rho: Sensitivity To Interest Rates

Rho is the sensitivity of an options's price to changes in interest rates. It is usually only worth considering for long dated options such as LEAPS. Rho is the least ...
Read More

Options Trading Strategy: Long Put

What Is A Long Put? A long put option strategy is the purchase of a put option in the expectation of the underlying stock falling. It is delta negative and ...
Read More

Zero Cost (Costless) Collar Explained

What Is A Zero Cost Collar? A costless, or zero cost, collar is an options spread involving the purchase of a protective put on an existing stock position, funded by ...
Read More

Calendar Spread

The Calendar Spreads Options Strategy What is a Calendar Spread? Intro Calendar Spreads are one of the key non-directional strategies used by options traders to make money in any market ...
Read More

Out Of The Money (OTM) Options Explained

Out of the money (OTM) options: where the exercise price for a call is more than the current underlying security’s price (or less for a put). This is an example ...
Read More

In The Money (ITM) Options Explained

In the money options are those whose strike price is less (for call options) or more (for put options) than the current underlying security price. Options provide the right to ...
Read More

Options Spreads: Put & Call Combination Strategies

Options Combinations Explained Options spreads involve the purchase or sale of two or more options covering the same underlying stock or security (ref). These options can be puts or calls ...
Read More

Puts and Calls: Stock Options Explained

What Are Puts and Calls? We've seen before exactly what options are, how they work and their function. Here we go further and explore the two main flavour of options ...
Read More

LEAP Options Explained: What Are They And How Do They Work?

Investors that are looking to make longer-term bets may use LEAP Options. Description of LEAP Options A LEAP option is essentially an option with longer terms than standard options. The ...
Read More

Covered Calls Options Strategy Guide

Introduction To Covered Calls Covered calls have always been a popular options strategy. Indeed for many traders, their introduction to options trading is a covered call used to augment income ...
Read More

Options Pricing & The Greeks

A good explanation of Options Pricing and The “Greeks”. Video and transcript.

Further Reading On Options Trading...

LEAP Options Explained: What Are They And How Do They Work?

Investors that are looking to make longer-term bets may use LEAP Options. Description of LEAP Options A LEAP option is essentially an option with longer terms than standard options. The ...
Read More

Covered Calls Options Strategy Guide

Introduction To Covered Calls Covered calls have always been a popular options strategy. Indeed for many traders, their introduction to options trading is a covered call used to augment income ...
Read More

Options Trading Strategy: Long Put

What Is A Long Put? A long put option strategy is the purchase of a put option in the expectation of the underlying stock falling. It is delta negative and ...
Read More

Protective Put: This Defensive Put Option Strategy Explained

How Can The Protective Put Strategy Help A Trader? Introduction To Protective Puts The protective put (sometimes called a married put) strategy is one of the simplest, but most, popular, ...
Read More

Options Rho: Sensitivity To Interest Rates

Rho is the sensitivity of an options's price to changes in interest rates. It is usually only worth considering for long dated options such as LEAPS. Rho is the least ...
Read More

Options Gamma Explained: Delta Sensitivity To Price

Gamma is the options greek measuring the sensitivity of delta to changes in stock price. Option traders tend to find it relatively easy to understand how the first-order Greek metrics ...
Read More

Put Call Parity

Put Call Parity Introduction Options trading can be relatively simple and can also become highly technical. One of the most important basic concepts when it comes to trading options is ...
Read More

Options Brokers Reviews

How To Choose The Best Options Broker There are several things an option trader needs to look for in an options broker. However, whilst most traders will need most, if ...
Read More

In The Money (ITM) Options Explained

In the money options are those whose strike price is less (for call options) or more (for put options) than the current underlying security price. Options provide the right to ...
Read More

Options Trading Strategy: Butterfly Spread

Introduction To Butterfly Spreads Options can provide traders and investors a tool for expressing different market opinions. Options can be used to make trades based on market direction, to bet ...
Read More

How Options Work: Trading Put And Call Options

Learning how options work is a key skill for any trader or investor wanting to add this to their arsenal of trading weapons. It’s really not possible to trade options ...
Read More

Buy to Open vs Buy to Close

What is Buy to Open vs Buy to Close? We look at these two similar, but not exactly the same, concepts. There are two ways you can participate in the ...
Read More

Options Greeks: Theta, Gamma, Delta, Vega And Rho

The options greeks - Theta, Vega, Delta, Gamma and Rho - measure option price sensitivity to changes in time, volatility, stock price and other parameters. In the world of finance, ...
Read More

The Synthetic Covered Call Options Strategy Explained

What Is A Synthetic Option Strategy? A synthetic covered call is an options position equivalent to the covered call strategy (sold call options over an owned stock). It consists of ...
Read More

Straddle Spread: Learn This Options Trading Strategy

Options Trading Strategy: Straddle Spread Introduction The straddle spread is a relatively simple options strategy that can be used under different market scenarios. However its most normal use is a ...
Read More