An options contract gives you the right to buy or sell a stock (or other asset) at a given price. This article will take a look at in the money options and how they can be used to your strategic ...
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 ...
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 ...
ITM options are more conservative, while more aggressive traders may prefer OTM contracts When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in ...
In a previous article, it was covered what an At The Money (ATM) binary is, it’s advantages and disadvantages, and when the best times are to trade it. In this article, we will cover what it means for ...
The Securities and Exchange Board of India (SEBI) is considering a new framework to manage risks linked to single-stock options that unexpectedly become “In-The-Money" (ITM) near expiry. This is ...
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 ...
Currently, brokers charge delivery margin for ITM options. However, brokers do not charge delivery margins in ‘Close to the Money’ (CTM) and OTM strikes. Brokers and clearing members see it as a major ...
https://www.thehindubusinessline.com/portfolio/commodity-analysis/mastering-derivatives-why-long-itm-calls-are-not-optimal/article65579336.ece Copy A reader of this ...
The market regulator has proposed that in-the-money (ITM) single stock-option contracts be allowed to devolve into futures one day prior to the option expiry. In a consultation paper released on ...