Check out our blog on the first 10 characteristics of stock options.

Here are some additional characteristics of stock options.

  1. In-the-Money: strike price is less than the current underlying stock price (calls… inverse is true for puts)
  1. At-the-Money: strike price is identical to (or near) the equity price
  1. Out-of-the-Money: strike price is greater than the current underlying stock price (calls… inverse is true for puts)
  1. Theta: time value of the option.

This extrinsic value erodes exponentially as it nears expiration.

  1. Delta: change in option vis a vis change in the underlying stock.

This percentage increases further ‘in the money’

 

Hugh Grossman, Head Trader at Day Trade SPY.

 

Hugh Grossman is the founder and Head Trader at DayTradeSPY and uses his vast experience to teach his methods to make consistent daily gains trading SPY options. Join Hugh in his interactive Trading Room to see how he regularly pulls in the profits!

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