Category - Education

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...

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

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...

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...

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...

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...