Unlike an equity position where profit or loss is from the entry point, options positions have breakevens above or below the current stock price. Options can increase or...

Trade execution in options is just like an equity, with a bid and ask, and a distance between the two, the bid/ask spread. But in options that bid/ask spread can...

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...

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...