Q & A – Key Points About Selling Options Part 13
Q & A – Key Points About Selling Options (Part 13) (Q) Stephanie had a question - what level should the desired Delta be? What level? So I'm thinking this question is what Delta should I be looking at when selling the
Pin Risk – Key Points About Selling Options Part 12
Pin Risk – Key Points About Selling Options (Part 12) Pin risk is really important. It only exists from the sell side. And what is it? Pink risk occurs when the stock settles close to the strike price at expiration. Pin risk, you
Options Assignment – Key Points About Selling Options Part 11
Options Assignment – Key Points About Selling Options (Part 11) From the sell side, what is an assignment? Well, we know when we sold the option, we took on the obligation to execute a transaction and shares of stock at the
Exercise Options – Key Points About Selling Options Part 10
Exercise Options – Key Points About Selling Options (Part 10) This final section here is a bit more simplistic, but some interesting background with respect to exercise and assignment rights and obligations. I already said most contracts are closed before they ever
Gamma Acceleration – Key Points About Selling Options Part 9
Gamma Acceleration – Key Points About Selling Options (Part 9) This is where I'll get into a bit on Gamma and Vega, when you sell options you're selling Gamma. First of what is Gamma? Gamma is the acceleration of your Delta. Delta’s
Theta Time Decay – Key Points About Selling Options Part 8
Theta Time Decay – Key Points About Selling Options (Part 8) Let's flip into the Greeks and look at what it means to have Greek positions from the sell side. And what kind of exposures are there. First, Theta; this is the
Cash Secured Put – Key Points About Selling Options Part 7
Cash Secured Put – Key Points About Selling Options (Part 7) Cash secured put, one of the other most popular trades out there. It's just like the naked put except you have the cash on hand. This is usually done, it's undoubtedly done,
Covered Call – Key Points About Selling Options Part 6
Covered Call – Key Points About Selling Options (Part 6) So, here's the strategies, the simple strategies that I will walk through. First the covered call. Now I said in the beginning, it's very rare if ever do I speak to
Options Time value – Key Points About Selling Options Part 5
Options Time Value – Key Points About Selling Options (Part 5) Now, once we reach expiration time all ‘at the money’ and ‘out of the money’ options are going to expire worthless. They'll have no value, so once expiration is reached time
Moneyness – Key Points About Selling Options Part 4
Moneyness – Key Points About Selling Options (Part 4) Some key terminology, a couple slides here on that, before we get into strategy because I'm going to reference these terms ‘in the money’, ‘at the money’ and ‘out-of-the-money’. Certainly, may have