Options field guide
All guides · Page 25
Plain-language guides to earnings, implied volatility, option strategies, target prices, and time decay
582 guides
What do open interest and liquidity tell you about an option?
Understand the difference between outstanding contracts, trading activity, and the ability to transact near a fair price
Read guideWhat is a bull call spread?
Understand the defined debit, capped upside, and expiration tradeoffs of buying one call and selling another
Read guideWhat is a cash-secured put?
Learn the obligation behind a short put, the role of reserved cash, and why the premium does not eliminate downside risk
Read guideWhat is a protective put?
Learn how a long put can set a defined stock-price floor through expiration while retaining stock upside
Read guideWhat is an option bid-ask spread?
Learn what the bid and ask represent, why their difference matters, and how it can affect an execution
Read guideWhat is option assignment?
Learn why a short option can create a share-delivery or share-purchase obligation before or at expiration
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