What is strike price in options trading? This is the figure separating your options contract from getting in the money and earning you a profit or expiring worthless - and costing you the premium you paid. It’s among the most important component of any options contract - and we’re going to teach you everything you [...]
There are so many different indicators that can help you gauge market sentiment, liquidity, and price trends - and today we’re going to introduce you to yet another: open interest. Wait - what is open interest in options trading? This is a measure of how many open options contracts exist on the market at any [...]
What is implied volatility in options trading? If you’re searching for implied volatility options meaning, you’ve come to the right place. We’re going to simplify this seemingly complex topic for you here in our blog. Implied volatility - or IV - is a driving factor of the premium for options contracts - and it speaks [...]
Whether you’re considering buying or selling options contracts, step one is having an in-depth understanding of how they work. That means knowing the different situations in which you should use a call vs put option. While one of these types of options contracts is for bearish stances, the other is for bullish stances. The consequences [...]
Did you just get a new job and discover that non-qualified stock options are part of your compensation package? First of all, congratulations on the gig! Second of all…what are non-qualified stock options? How do they work, and when can you actually exercise them? Is there anything you need to be aware of from a [...]
Want to learn how to make money trading options? In this day and age, it’s easier than ever to earn a full-time income as an options trader. Yes - even if you have no existing trading experience! Here at VectorVest, we have all the resources you need along with tools to empower you along this [...]
What are the benefits of trading stock options? If you’re considering learning how to buy and sell options, you’re making a great decision. This investment style offers a host of advantages to traders. And in this complete guide, we’re going to cover them all. Leverage, low risk, diversification, flexibility, low capital requirements, and tax advantages [...]
When you purchase options contracts, you’re making an educated guess on how you expect the underlying stock in question to perform in the future. Maybe you’ve purchased a call option and are hoping the stock in question rises in price so that you can then purchase it at a discount. On the other hand, perhaps [...]
There are a few components of an options contract - the strike price, the underlying stock in question, the quantity, and of course, whether the contract is a call or put. But today, we’re going to talk about the expiration date. More specifically, when do stock options expire? Not just the date - but what [...]
Are you wondering when to sell stock options contracts back on the market as opposed to exercising the option and buying/selling the underlying stock in question? You’ve come to the right place. Maybe your contract is in the money right now - or looks as if it’s headed in that direction. But, you don’t have [...]
