When trading out-of-the-money (OTM) options, the objective is to maximize your leverage on the trade. While In-the-money (ITM) options are more expensive, they are more likely to maintain their ...

Traders define options as "in the money" (ITM) or "out of the money" (OTM) by the strike price's position relative to the ...

An option can be either in the money, out of the money or (very rarely) at the money. These three different statuses for options indicate the relationship of the option’s strike price and the price of ...

Risk reversal is a key strategy in options trading and foreign exchange markets aimed at managing risk and maximizing potential returns. In options trading, it involves selling an out-of-the-money ...

Derivatives are instruments that obtain value based on the price of an underlying asset, such as a stock, bond, ETF, or commodity. Stock option contracts are securities that give traders the choice of ...

Netflix recently had a 10-for-1 stock split. It's easier to sell short out-of-the-money (OTM) put options. The reason is that ...

When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option. While the goal for "vanilla" buyers is ...