Options

An option is a contract, which provides for the right of the option holder to buy (Call) or sell (Put) the underlying asset in the specified period and at a certain price, this price is called "strike".

The obligation of the option seller is, to sell or buy this asset on the option exercise date at a specified price.

LESSON 37. SALE OF OPTIONS. TIME IN POSITION

УРОК 37. ПРОДАЖА ОПЦИОНОВ. ВРЕМЯ НАХОЖДЕНИЯ В ПОЗИЦИИ УРОК 37. ПРОДАЖА ОПЦИОНОВ. ВРЕМЯ НАХОЖДЕНИЯ В ПОЗИЦИИ 1

Let's remember an important rule of option trading, which was voiced in one of the past lessons. If time affects our position negatively, means, minimum time should be in position! (time is against us). In this case, time works in our favor..

LESSON 35. SALE OF OPTIONS. ENTRY INTO A POSITION AND ITS CREATION. PART 2

УРОК 35. ПРОДАЖА ОПЦИОНОВ. ВХОД В ПОЗИЦИЮ И ЕЕ СОЗДАНИЕ. ЧАСТЬ 2 УРОК 35. ПРОДАЖА ОПЦИОНОВ. ВХОД В ПОЗИЦИЮ И ЕЕ СОЗДАНИЕ. ЧАСТЬ 2 6

Expiration period How to choose the expiration period when selling options? There are different points of view on this question.: 1. sell options as far away as possible, motivating this with their greater premium and, respectively, the opportunity to get more potential profit from the transaction 2.

LESSON 33. RISKS OF SALE OF OPTIONS. PART 2

УРОК 33. РИСКИ ПРОДАЖИ ОПЦИОНОВ. ЧАСТЬ 2 УРОК 33. РИСКИ ПРОДАЖИ ОПЦИОНОВ. ЧАСТЬ 2 10

Potential increase in collateral for a position In one of the first lessons, we introduced the concept of collateral. We already know, that the GO for a futures position is equal to the difference between the upper and lower price limits. Ie.

LESSON 29. COVERED AND UNCOVERED SALE OF OPTIONS

УРОК 29. ПОКРЫТАЯ И НЕПОКРЫТАЯ ПРОДАЖА ОПЦИОНОВ УРОК 29. ПОКРЫТАЯ И НЕПОКРЫТАЯ ПРОДАЖА ОПЦИОНОВ 18

Covered and uncovered sale Any option sale can be: 1. Covered - we have sold the option and have a long position in the underlying asset if we sell Call or short position in the underlying asset if we sell Put. The position in the underlying asset covers your risks on the sold option.

LESSON 28. PURCHASE OF OPTIONS. TIME IN POSITION

УРОК 28. ПОКУПКА ОПЦИОНОВ. ВРЕМЯ НАХОЖДЕНИЯ В ПОЗИЦИИ УРОК 28. ПОКУПКА ОПЦИОНОВ. ВРЕМЯ НАХОЖДЕНИЯ В ПОЗИЦИИ 20

The second important rule of option trading: If time affects our position negatively, means, minimum time should be in position! (time is against us). Decrease or increase can happen, Or maybe not, but time flows in one direction anyway, every day bringing us closer to expiration.

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