This article will show you how to calculate the intrinsic value of your options. At the same time showing you how to communicate with other options traders, when discussing trade with them. 1.)To even begin to calculate the intrinsic value of any option you must know and understand your rights as options owners. A buyer of a call option has the right, but not the obligation … [Read more...]
Trading with Double Diagonal Options
A double diagonal trade is a neutral trade, with a small chance for profit and an equivalent small chance for loss. If you're familiar with options trades, the double diagonal is similar to a Butterfly spread except of that it is diagonal. The most challenging aspect of the trade is finding a good discount broker, since the trade requires four distinct transactions. Define a … [Read more...]