Options Basic

What is intrinsic value of an optionWhen you dive into the world of options trading, understanding the concept of intrinsic value is crucial. It can help you make more informed decisions and pote…

Why Calculating Expected Options Moves MatterRisk Management and StrategyFor traders, calculating expected options moves is essential to effective risk management and strategy development. By…

Price Acceleration and Leverage CompressionOne of the most common triggers for a margin increase is an aggressive price rally—even if Volatility is unchanged.Why It Happens:As MSTR ralli…

Lack of Education and Strategic FoundationThe number one reason traders lose money in options is a fundamental misunderstanding of how options work. Many confuse buying a call with a guaranteed b…

Options are often misunderstood as complex or speculative, but at their core they are tools for managing risk and expressing market views. From hedging downside to generating income, the right strat…

Define Your Market Outlook and Profit MechanismIn this article we will discuss how one can build a great options trade. Before selecting an option strategy, get clear on how you expect to make mo…

So what is GEX?Gamma Exposure (GEX) is a metric derived from the second derivative of an option’s value with respect to the underlying’s price. In simple terms, it represents how sensitive an opt…

What Exactly Is an Option?In this article we will focus on what are options. An option is a contract that gives you the right, but not the obligation, to buy or sell an asset at a specified price…

What Is a Roth IRA?A Roth IRA is a type of retirement account where individuals contribute money that has already been taxed. The key benefit is that once the money is inside the account, it grow…

Understanding the Instruments: Options and FuturesBefore using a platform like MenthorQ, it’s essential to understand what you’re trading.What Are Options?Options are contracts that give…

What Is Trading?At its core, trading means speculating on the future price of an asset without necessarily owning it. Instead of buying a share of Apple and holding it for years, a trader might b…

1. Long Gamma, Short Vega Q: How do you create a long gamma, short vega options trading strategy? A: Buy short-dated options that are slightly out-of-the-money. Example: Weekly ATM straddles. These o…

What the VIX Really MeasuresThe VIX is calculated using S&P 500 option prices. Specifically, it takes a strip of out-of-the-money puts and calls across a 30-day maturity window and converts t…

Why Expiry Selection MattersAt its core, an option is a decaying asset. Every day that passes reduces its time value, a concept known as theta decay. The impact of this decay is nonlinear: short-…

ETF Options: Tradable Funds with Familiar StructureExchange-traded funds (ETFs) are one of the most popular instruments in modern markets. An ETF is a pooled investment vehicle that tracks a spec…

What Is an Option?An option is a financial contract that grants the buyer the right, but not the obligation, to buy or sell a specific quantity of an underlying security at a predetermined price…

Start On The Dashboard: See The Big PictureEvery solid options session begins with a top-down scan. Before you dig into a single chart, you need context for what the broader positioning and volat…

The Basics: What Is an Option Spread?At its core, an option spread involves buying and selling options of the same class (either calls or puts) on the same underlying asset but at different strik…

Theta: The Cost Of TimeEvery option has an expiration date. The closer you get to that date, the faster your option loses its time value. This erosion of value is called time decay, measured by t…

Covered CallsA covered call is one of the most popular and straightforward options strategies for beginners. It’s a way to earn extra income on stocks you already own.How It Works:In a co…

Understanding Strikes: Where Do You Think It’s Going?Every option has a strike price — the predetermined price at which you have the right to buy (calls) or sell (puts) the underlying asset befor…

Why Sell Options At All?When you sell an option, you become the “insurance provider.” You receive a premium upfront for taking on an obligation that may or may not get exercised. You’re essential…

What Does It Mean To Hedge With Options?Hedging is all about protection. It’s a defensive strategy designed to limit potential losses in a position you already own. Think of it like buying insura…

The Basics: What Expiration MeansAll listed options have an expiration date. For standard monthly options in the US, this is typically the third Friday of the expiration month. Weekly options exp…

What Is an Option?An option is a contract between two parties. It gives the buyer the right, but not the obligation, to buy or sell an underlying asset (like a stock) at a specific price before a…

What Are American And European Options?At the core, the difference comes down to when you can exercise your right as the option holder.American-style options allow you to exercise your optio…