You have done all of your analysis and have come up with a directional strategy for a stock option trade. Great! A lot of the hard work has been done. But what should your price target be for your spread? In this video, I will show you how using just three simple data inputs will help you find the desired price target.
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Ever wonder why option premiums rise before binary events in the stock market? It’s not uncommon for option prices to spike ahead of major announcements like: For context, I like to describe option premium as the difference between the contract’s price and intrinsic value. It’s essentially what buyers pay for the “hope” that an option […]
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When the markets move, the Delta Greek can be one of the most valuable metrics to options traders. There’s a particular correlation between the Delta Greek and options premium that can help traders find out how much the price of an option is expected to change. From my personal experience, I believe this pattern can […]
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Written By: Howard Greenberg As everyday traders put their trading plans into action for 2026, penny stocks might not be on many of their radars. It’s totally understandable why penny stocks may not appeal to the more calculated seasoned traders. Their reputations for susceptibility to manipulation, extreme volatility, and low liquidity make them way too […]
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The Iron Condor is a neutral options trading strategy that can have bullish or bearish leanings (depending on how it’s structured). It’s designed to profit when the price of an underlying asset moves within a specific tight range (ie, sideways) and volatility decreases. For Scott Bauer, the Iron Condor is one of his go-to options […]
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Volatility skew is the difference in Implied Volatility (IV) between out-of-the-money (OTM) calls and puts with the same expiration date. It signals market sentiment by showing whether traders are paying more for downside protection (puts), or upside potential (calls). As a result, this type of trading action creates a “skewed” shape in the volatility surface […]
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Have you ever heard of synthetic trading? In a nutshell, it’s a unique trading strategy, where traders use combinations of options contracts—and sometimes the underlying stock—to replicate the risk/reward profile of another position. The type of position a trader might try to replicate could include owning stock, shorting stock, or holding a single call or […]
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