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Total: 12 results found.

1. New Trade - WMT Diagonal Call Spread
(OBB Prodigy!/Theta Burn)
... decrease as the stock rose in price). If WMT increases substantially, I'll likely sell for a modest gain. Ideally, WMT will stay relatively flat for an extended period of time. I think this is likely given ...
Friday, 05 March 2010
2. New Trades - LO, GS, BDX
(OBB Prodigy!/Theta Burn)
... declines substantially or IV increases (IV is relatively low on BDX given its stability) I’ll likely sell an additional put at a lower strike price.    ...
Tuesday, 02 March 2010
3. 10.2- Trading Plan: Strategy Analysis
(Courses/Master 400 Level)
... preferred non-directional position candidates. This is important because low Beta underlying issues typically have lower premiums priced into the options, which increases the risk and commission levels ...
Tuesday, 15 December 2009
4. 5.10- Psi
(Courses/Undergraduate 200 Level)
... the lesson to a minimum, students should remember that Psi is negative for call options and positive for put options. The reason is because when a firm increases the dividend yield, that factor must be ...
Tuesday, 24 November 2009
5. 5.7- Vega (Long Options)
(Courses/Undergraduate 200 Level)
... (IV). Vega is positive for long call and long put positions and negative for short call and short put positions. The reason for this is because rising IV increases option premiums. Vega is represented ...
Tuesday, 24 November 2009
6. 5.4- Gamma (Short Options)
(Courses/Undergraduate 200 Level)
... This is an important  point to remember. Gamma will increase the change in Delta of a short call option as the underlying stock price increases. Gamma will decrease the Delta of a short call option ...
Saturday, 21 November 2009
7. 5.3- Gamma (Long Options)
(Courses/Undergraduate 200 Level)
... is an important distinction to make. Gamma will increase the change in Delta of a long call option as the underlying stock price increases. Gamma will decrease the Delta of a long call option as the ...
Saturday, 21 November 2009
8. 5.1- Delta (Long Options)
(Courses/Undergraduate 200 Level)
... shares of the underlying stock. Therefore, in the first example the value of the option contract would increase or decrease by $65 when the underlying stock increases or decreases $1. In the second ...
Saturday, 21 November 2009
9. 4.1- Option Pricing Basics
(Courses/Undergraduate 200 Level)
... dividend and risk-free interest rate. Underlying stock price As the underlying stock prices rises or falls, the option premium will fluctuate with it. When the underlying stock price increases, ...
Thursday, 19 November 2009
10. 3.1- Reading Option Chains
(Courses/Freshman 100 Level)
... number increases when buyers purchase option contracts and decreases when sellers close option contracts. The example below represents a Mastercard (MA) December 2009 options chain. Call options ...
Monday, 16 November 2009
11. 2.2- Long Option Risk Graphs
(Courses/Freshman 100 Level)
... that the underlying stock price is going to increase or 2) they want the right to buy the stock, but not the obligation. If the investor is speculating, they can profit from increases in the underlying ...
Monday, 16 November 2009
12. 1.7- Exercise & Assignment
(Courses/Freshman 100 Level)
... have the right to exercise the contract and purchase 100 shares of the underlying stock at $450 per share at any time before December expiration. Even if Google increases in value to $900 per share, the ...
Monday, 16 November 2009

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