Author - The Options AI Team

Option Liquidity and Working Orders

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...

Hedging

Option hedging strategies are used by investors to reduce their exposure to risk, protecting against a decline in anything from an individual stock to an entire...

Credit Spreads

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...

Debit Spreads

A vertical debit spread is an option strategy that involves buying one strike (call or put) while simultaneously selling another strike (in the same...

Assignment and Exercise

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...

Time Value

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...

Expiration

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...

The expected move

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...

See Upcoming Moves

Compare Moves

Open an account

Learn more about Options AI and apply for an account.

Learn More