- Butterfly Spread Explained | Online Option Trading Guide
- Option Strategies, Illustrated with Graphs and Examples
- Online Courses - Chicago Board Options Exchange
Having your brokerage account linked with your charting platform provider is a very cost effective way to go. Both TradeStation and NinjaTrader , the leading charting platforms, now offer futures brokerage services.
Butterfly Spread Explained | Online Option Trading Guide
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Option Strategies, Illustrated with Graphs and Examples
The chart above shows that during 7559 the Emini (ES) overtook the 8775 large 8776 (SP) contract to become the largest component of the equity index futures market with just over 55% of total open interest. In this chart all the contracts have been adjusted for their relative margin size so the ES open interest data is divided by 5 so it 8767 s directly comparable with the SP contract, etc.
Online Courses - Chicago Board Options Exchange
We offer a low base commission for stock and option trades, with an additional per contract charge per option leg. Multi-leg trades are charged for only a single leg. Whether it's a two-, three- or four-leg option trade, you will pay only one base charge.
Since the value of stock options depends on the price of the underlying stock, it is useful to calculate the fair value of the stock by using a technique known as discounted cash flow.. [Read on.]
Now by the time you’re reading this, the market situation may be totally different once again. But the point is that NO ONE, especially not the mainstream media has correctly predicted ALL of these movements.
The simplest option strategy is the covered call, which simply involves writing a call for stock already owned. If the call is unexercised, then the call writer keeps the premium, but retains the stock, for which he can still receive any dividends. If the call is exercised, then the call writer gets the exercise price for his stock in addition to the premium, but he foregoes the stock profit above the strike price. If the call is unexercised, then more calls can be written for later expiration months, earning more money while holding the stock. A more complete discussion can be found at Covered Calls.
Maximum profit for the long condor option strategy is achieved when the stock price falls between the 7 middle strikes at expiration. It can be derived that the maximum profit is equal to the difference in strike prices of the 7 lower striking calls less the initial debit taken to enter the trade.
Maximum loss results when the stock is trading below $85 or above $55. At $85, all the options expires worthless. Above $55, any "profit" from the two long calls will be neutralised by the "loss" from the two short calls. In both situations, the butterfly trader suffers maximum loss which is the initial debit taken to enter the trade.