Using Options to hedge against stock positions so that the cost outlay and risk exposure is lower.
Tag: trading
Order Types on Interactive Broker
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…
6 Steps to a Trading Decision
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…
Option Basics
. XYZ AUGUST 70 CALL AT $3.10. where XYZ is the name of the stockAugust is the expiration date70 is the strike priceCall is the option type$3.10 is the premium . Buyer – LONG – buy to open – debit Buyer – LONG – sell to close – credit Seller – SHORT – sell to…