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

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 ...

As an options writer, there will be times you will find your position to be In-The-Money, or ITM, as expiration approaches. This means the stock price is below the strike price you picked to establish ...

The strike price is the price at which a put or call option can be exercised. It's also known as the exercise price. Picking the strike price is one of three key decisions an investor must make when ...

Options greeks are a group of variables that affect option positions. They are typically referred to as delta, gamma, theta, vega, and Rho in the options market. These variables indicate how changes ...

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 ...

How ITM covered calls on dividend paying stocks can increase yield and decrease risk. How to appropriately select the best strike price considering your own investment goals, risk tolerance, and ...

Options traders typically want their option contract to be “in the money,” meaning the contract has greater value than buying or selling based on current market values. But depending on your risk ...

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 ...