American style or European style

If you were short put options, the exercise forces you to buy stock at the strike price, resulting in a long stock position in your account. When options contracts are first created, exercise is specified in one of two different ways: American style or European style. American style options can be exercised on any business … [Read more…]

3 Important Aspects Of Online Trading Stock And Option

The butterfly option is basically the option position that is comprised of two vertical spreads with common price. The butterfly option involves an opening position wherein options (Calls and Puts) are bought or sold at three different strike prices. This option is has both limited losses and limited profits. It is common to hear or … [Read more…]

Trading Butterfly Option

The “Y” axis is the right side of the chart, running vertically, and flows top to bottom. This portion of the graph has the price action. Essentially for the beginner, charting stocks boils down to three things: You’re going to look at the correlation between a stock’s price and volume activity (as shown by the … [Read more…]