Options University Blog

Limit Order is an order requested to a broker regarding the purchase or sale of specified number of shares at a determined price or higher than that is called as Limit Order. You can thus determine the amount of time for which the order placed can stay outstanding before it stands void.
Share This
Tags: limit orderIf […]

[Read more →]

1. Leg is described as an entry technique put in place by the brokers for execution of orders. While executing orders, if the broker executes it in different phases, time delays heighten the risk for a price swings causing a Leg.
2. Varied aspects associated with a combination option are often described as Leg
Share This
Tags: Leg […]

[Read more →]

Ladder Option is an option that provides for locking in the security gain as soon as the underlying security reaches the predetermined levels of price. Thus it guarantees some amount of profit on the investment even if the price of the underlying security might fall below the determined level before the expiration of the option.
Share […]

[Read more →]

When a trader has less long positions then short it is called Frontspread. It has huge risk where earning the profit has limited scope. Normally professional investors, who expect the underlying to make upward movements make use of this option strategy.
Frontspread is even known by the name “Ratio Vertical Spread”.
Share This
Tags: call option, Frontspread, Ratio […]

[Read more →]

What Does Bear Spread Mean?

Bear spread refers to the option that seeks highest profit in case of the decline of the rate of underlying asset. In this strategy, the investor make simultaneous buy and sell of call or put options. Sale is made for the lower strike price and buy is
Share This
Tags: bear Spread, strike […]

[Read more →]

What Does “Bear Put Spread” Mean?
Bear Put Spread  is the spread used when the traders expect a fall in rates of underlying asset. The strategy involves purchase of put option at a particular strike price and sale of equal number of put options at a strike price lower than that. The difference in the […]

[Read more →]

What Does “Bear Call Spread” Mean?
The Bear Call Spread is the spread used when the traders expect a fall in rates of underlying asset. The strategy involves selling of call option at a particular strike price and purchase of equal number of call option at a strike price higher than that. The difference in […]

[Read more →]