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Define short put option income

Russell Sage - Renowned American Politician and Financier who introduced OTC call and put options in 6877. Read about the History of Options Trading

Option Strategies by

Trend - The direction of a price movement. A trend in motion is assumed to remain intact until there is a clear change.

Option Trading Strategies

Expected Return - A rather complex mathematical analysis involving statistical distribution of stock prices, it is the return which an investor might expect to make on an investment if he were to make exactly the same investment many times throughout history.

Put | Define Put at

Breadth - The net number of stocks advancing versus those declining. When advances exceed declines the breadth of the market is inclining. When the declines exceed advances the market is declining.

Instead of purchasing put options, one can also sell (write) them for a profit. Put option writers, also known as sellers, sell put options with the hope that they expire worthless so that they can pocket the premiums. Selling puts, or put writing, involves more risk but can be profitable if done properly.

Out of the Money - Describing an option that has no intrinsic value. A call option is out-of-the-money if the stock is below the strike price of the call, while a put option is out-of-the-money if the stock is higher than the strike price of the put. Read More About Out Of The Money Options.

Liquid / Liquidity - The ease at which a purchase or sale can be made without disrupting existing market prices. Read About What Affects Stock Option Liquidity Here!

At the Money - When an option's strike price is the same as the prevailing stock price. Read More About At The Money Options.

Ratio Strategy - A strategy in which one has an unequal number of long securities and short securities. Normally, it implies a preponderance of short options over either long options or long stock.

Risk Warning: Stocks, futures and binary options trading discussed on this website can be considered High-Risk Trading Operations and their execution can be very risky and may result in significant losses or even in a total loss of all funds on your account. You should not risk more than you afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Information on this website is provided strictly for informational and educational purposes only and is not intended as a trading recommendation service. shall not be liable for any errors, omissions, or delays in the content, or for any actions taken in reliance thereon.

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