Discover Pairs Trading

Discover Pairs Trading

Pairs trading is generally considered a market neutral strategy.  Some traders use the strategy as a directional strategy.  Pairs trading is one of many approaches a trader can use to reduce risk. The strategy often combines a long position with a short...
What is Moneyness in Options Trading…

What is Moneyness in Options Trading…

Moneyness is a common term which is very important when looking at an option chain.  Moneyness in an option chain refers to the relationship of where the price of the underlying is currently trading and the strike price of the option within the option...
Credit Spreads; a Review Of The Basics

Credit Spreads; a Review Of The Basics

One of the myriad of strategies available to traders are credit spreads.  Two popular types of credit spreads are the Bear Call spread and the Bull Put spread.  Today's article will cover the basics of these spreads … how they are constructed, how much can...
What is a Synthetic Long Stock Position?

What is a Synthetic Long Stock Position?

Today you will learn about a basic synthetic option position called the synthetic long stock position. You can create a synthetic long stock position to replicate and replace buying stock outright. You also can create a synthetic short stock position to replicate and...