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Disclosure: Some of the links below are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through to make a purchase. Preface as seen on Interactive Brokers (affiliate link) Quick Trade Platform Sourcehttps://www.interactivebrokers.com/en/software/tws/basicordertypestop.htm LMT A limit order is an order to buy or sell a contract…
Disclosure: Some of the links below are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through to make a purchase. Interactive Broker (affiliate link) provides their clients with multiple platforms to trade at their comfort. I have listed the platforms available and posted some of…
Disclosure: Some of the links below are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through to make a purchase. Interactive Broker (affiliate link) requires to convert the base currency, SGD to USD before you are able to trade in the US market. Buy USD,…
1. State your Forecast – important to be specific about price of stock and time frame e.g. XXX stock will rise from $10 to $15 in 20 days. Today is 40 days to expiration. 2. Calculate the Implied Volatility – volatility percentage in the option pricing formula – Stock price – Strike price – Dividends…
1. Strike Price – if the stock price don’t move beyond the strike price, then the option will expire worthless 2. Time to Expiration (time decay) – the longer the time, the higher the option price – the most time decay happens as option is near expiry 3. Effect of Interest Rate on short- term options prices…