Trade execution in options is just like an equity, with a Bid and Ask. But in options, the Bid/Ask can sometimes be wider and less liquid than an equity. Those factors...
Author - The Options AI Team
A vertical credit spread is an option strategy that consists of the sale of one option and the purchase of a second option with a different strike price in the same...
A vertical debit spread is an option strategy that involves buying one strike (call or put) while simultaneously selling another strike (in the same...
Regular assignment/exercise – The settlement price of an option is the official closing price at the end of the day on its expiry. The closing price of the stock...
The time value of an option refers to the additional premium (or extrinsic value) of an option beyond its intrinsic value. An easy way to think about time value is that...
The expiration date is the last day that an option contract or contracts (in the case of a spread) are valid. On or before this day investors should decide what to do...
Compare your trade breakevens to understand the difference between single options, multi-leg and credit vs debit trades at your disposal. When selecting a trade pay...
What is the Expected Move? The expected move is the amount that options traders believe a stock price will move up or down. It can serve as a quick way to...
Iron condors and butterflies combine a credit put spread and a credit call spread and attempt to profit from small or no moves in the stock. An easy way to think about...
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