Category Archives for Options Education

How To Choose The Right Put Option

Most traders focus on making money when underlying markets move higher, but most professional and seasoned traders focus equally on both sides of the market. You have to consider the fact that financial markets move down faster than they rise, giving you tremendous opportunity to profit from both sides of the market. Thereby, increasing your potential […]

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Calendar Call Spreads 101

The idea behind the calendar spread is to sell time, which is why calendar spreads are also known as time spreads. A calendar spread is constructed through two simultaneous trades: 1) the purchase of an option, and 2) the sale of another option with the same strike price, but an earlier expiration. This combination creates […]

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Bull Call Debit Spread Explained

A bull call spread is a vertical spread that relies on two calls with the different strike prices and same expiration date. The strike price of the short call is higher than the strike price of the long call, which means this strategy is a debit spread, but the short call option can be utilized to offset […]

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Understanding Open Interest For Options Buyers and Sellers

When you examine an options chain, there will be a column that’s titled open interest, which can be a very useful tool for options traders. The open interest shows all open options contracts that are available for exercise have not been closed out. For example, if you opened or initiated a trade by purchasing 10 […]

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