- Straddle vs. a Strangle: Understanding the Difference
- What is Straddle? Definition of Straddle, Straddle Meaning
Stop-loss can be defined as an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in a trade. The concept can be used for short-term as well as long-term trading. This is an automatic order that an investor places with the broker/agent by paying a certain amount of brokerage. Stop-loss is also known as &lsquo stop order&rsquo or &lsquo stop-market order&rsquo . By p
Straddle vs. a Strangle: Understanding the Difference
In options trading, you may notice the use of certain greek alphabets like delta or gamma when describing risks associated with various positions. They are known as "the greeks".. [Read on.]
What is Straddle? Definition of Straddle, Straddle Meaning
However, for active traders, commissions can eat up a sizable portion of their profits in the long run. If you trade options actively, it is wise to look for a low commissions broker. Traders who trade large number of contracts in each trade should check out as they offer a low fee of only $ per contract (+$ per trade).
Buying straddles is a great way to play earnings. Many a times, stock price gap up or down following the quarterly earnings report but often, the direction of the movement can be unpredictable. For instance, a sell off can occur even though the earnings report is good if investors had expected great results.. [Read on.]
For ease of understanding, the calculations depicted in the above examples did not take into account commission charges as they are relatively small amounts (typically around $65 to $75) and varies across option brokerages.
The Iron Butterfly Option strategy, also called Ironfly, is a combination of four different kinds of option contracts, which together make one bull Call spread and bear Put spread. Together these spreads make a range to earn some profit with limited loss. Ironfly belongs to the &lsquo wingspread&rsquo options strategy group, which is defined as a limited risk strategy with potential to earn limited profit
Day trading options can be a successful, profitable strategy but there are a couple of things you need to know before you use start using options for day trading.. [Read on.]
Cash dividends issued by stocks have big impact on their option prices. This is because the underlying stock price is expected to drop by the dividend amount on the ex-dividend date.. [Read on.]
Mid 66th century alteration of dialect striddle, back-formation from dialect striddling ‘astride’, from stride + the adverbial suffix -ling.
On expiration in July, if XYZ stock is still trading at $95, both the JUL 95 put and the JUL 95 call expire worthless and the long straddle trader suffers a maximum loss which is equal to the initial debit of $955 taken to enter the trade.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.