call option

What is a Long Call?

in Options Trading Strategies

A long call is a bullish option trading strategy used by investors who plan to profit from an increase in the underlying stock price. This type of strategy is initiated when an investor buys one or more call option contracts. If the share price of the stock increases, the long call becomes more valuable. On [...]

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How to Initiate a Bear Call Spread

in Options Trading Strategies

A bear call spread is a type of option trading strategy that is used when a decrease in the price of the underlying stock is anticipated. This strategy is implemented by selling call options at a specific strike price and at the same time buying the same number of call contracts at a higher strike [...]

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What is the Intrinsic Value of a Stock Option?

in Options Trading 101

The intrinsic value of an option is the difference between the underlying stock’s share price and the strike price of the contract. This amount is commonly referred to as the in the money portion of the option. If an option has a positive intrinsic value, then it is considered to be in the money. However, [...]

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In the Money Options Explained

in Options Trading 101

In order for a stock option to be considered in the money, it must be worth exercising. This means that the strike price of the contract must hold more value than the current share price of the underlying stock. Both puts and calls can be considered in the money, however the process of determining this [...]

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Strike Price Explained

in Options Trading 101

What does strike price mean on an option contract? It is the price at which an option (put or call) can be exercised. For call options, the strike price is where the underlying stock can be bought by the owner of the contract. A strike price on a put option is where the underlying stock [...]

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