Anchor Units and Offset Units
Versatility is the unique qualities of an options. And a great benefit of this is we can combine multiple options into a position to create a strategy based on our purpose.
Versatility is the unique qualities of an options. And a great benefit of this is we can combine multiple options into a position to create a strategy based on our purpose.
We can easily trade when we know the direction of a particular stock. Suppose if the underlying is in uptrend we can buy call or short put and if underlying is in downtrend we can buy put or sell calls.
Nowadays, half of the population is aware of the word trading. Be it intentionally or unintentionally, most of us have done trade in our day to day life. To portray it in a simple way, everything you sell and buy is trading. In terms of stock market it is called stock trading that usually refers to buying
If I say “Change in implied volatility can have a greater impact on an option’s premium than the effects of delta, gamma, theta and rho combined” Sounds surprising? But it’s true.
Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds.
As an options trader two ways for trading an options
One is option buying and another one is option selling, but the question is when to be buyer and when to be seller? In this article you will get to know which one is better.