Restricted stock, also known as letter stock or restricted securities, refers to stock of a company that is not fully transferable until certain conditions have been met. Upon satisfaction of those conditions, the stock becomes transferable by the person holding the award. Another type of restricted stock is a form of compensation granted by a company. Typically, the … [Read more...]
The Long Gut – Option Trading
The Long Gut Spread is a volatile options trading strategy designed to profit when the underlying stock moves strongly upwards or downwards. The Long Gut Spread is a cousin of the Long Straddle and the Long Strangle with the only difference being that In The Money options are used instead.This strategy is usually used by traders who not sure as the direction of the underlying … [Read more...]
Short Strangle Option Trading [Explained]
The Short Strangle, is a very similar option trading strategy to a Short Straddle and is the complete reversal of a Long Strangle. Learning the Long Strangle first makes the Short Strangle easier to understand.The Short Strangle strategy is similar to the Short Straddle strategy, except you sell the call option(s) and the put option(s) at different strike prices. When entering … [Read more...]
Long Strangle Option Trading – how to use it
The Long Strangle, or simply the Strangle, is a volatile option trading strategy that profits when the stock goes up or down strongly. The Strangle is a cousin of the Long Straddle and the Long Gut, making up a family of basic volatile options strategies. Learning the Straddle first makes the Strangle easy to understand. The long strangle is simply the simultaneous purchase … [Read more...]
Short Straddle Option Trading Strategy
A short straddle is a non-directional options trading strategy that involves simultaneously selling a put and a call of the same underlying security, strike price and expiration date. The profit is limited to the premiums of the put and call, but it is risky if the underlying security's price goes up or down much. The deal breaks even if the intrinsic value of the put or the … [Read more...]