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ETF Options
ETF options are financial derivatives that give traders the right, but not the obligation, to buy or sell shares of an exchange-traded fund (ETF) at a predetermined price within a specific time frame. These options function similarly to stock options but are based on ETFs, which represent a basket of assets like stocks, commodities, or
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Option Trading Profit
Option trading profit is derived from changes in the price of the underlying asset. For option buyers, profit is realized if the asset’s price moves in their favor before expiration, allowing them to sell the option for more than the
Rolling Option Trades
Rolling option trades involves extending the duration of an existing options position by closing the current contract and opening a new one with a later expiration date, often at a different strike price. This strategy is typically used to avoid
Option Trading Risk
Option trading carries significant risk due to the inherent leverage involved. Buyers can lose the entire premium paid for the option if it expires worthless, while sellers may face unlimited losses, especially when writing uncovered options. Market volatility, unpredictable price