Derivatives Trading
This post captures foundational knowledge that will help master Australian derivates trading. Options Fundamentals Call Option Analogy: Renting the Right to Buy a House Later Put Option Analogy: Renting the Right to Sell a House Later American vs European Buyer vs Seller Options Bring Flexibility The Value of an Option Call Value Example Option Premiums End-To-End Call Walkthrough Portfolio Strategies Covered Calls Covered Puts Spread Trading Bull Call (debit) Bull Put (credit) Bear Put (debit) Bear Call (credit) Condor (debit) Iron Condor (credit) Indicators Stochastics Bollinger Bands 50-Day Moving Average (50-DMA) Volume Options Trading Cheat Sheet FAQ Glossary Options Fundamentals An option is a contract that gives you the right, but not the obligation, to buy or sell a stock at a specific price (called the strike price) before a certain date (the expiration date). ...