Options

Investing in Options: A Beginner’s Guide (Part 4)

Speaking Greeks For option traders, the Greeks are a series of handy variables that help explain the various factors driving movement in option prices. Although the Greeks collectively indicate how the marketplace expects an option’s price to change, the Greek values are theoretical in nature. There is no guarantee that these forecasts will be correct. […]

Options

Buying a Put Option vs. Short Selling

If you're bearish on a stock, you can try to capitalize on your position in a few ways: Sell the stock, if you own it. Sell the stock, even if you don't own it, by borrowing shares via your brokerage firm. At a later date, you can buy the shares (hopefully at a lower price) […]

Options

Options Trading Mistake #1: Buying out-of-the-money (OTM) call options

It seems like a good place to start: buy a call option and see if you can pick a winner. Buying calls may feel safe because it matches the pattern you're used to following as an equity trader: buy low, sell high. However, buying OTM calls outright is one of the hardest ways to make […]