How Do Puts Work?

The normal rule of thumb that people argue is that long puts are used if you are bearish.  But, just as calls don’t always pay you on a rally, being long a put doesn’t always pay if the market sells off.  If implied volatility is high and the break is small or takes time, the … More How Do Puts Work?

What Is An Option?

To really get the most out of this educational experience, we need to start at the very basic building blocks.  The first question that we need to answer is what exactly is an option. An American Option is a financial contract that gives the owner the right, but not the obligation to buy or sell … More What Is An Option?