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Blog Posts
OTM Option vs. ITM Option: Understanding the Differences and Risks in Options Trading
OTM options are like elusive treasures, affordable but offering no guaranteed returns. These contracts may not always be ideal for exercising due to the current market price of the underlying…
The Ultimate Guide to Vertical Spreads: Strategies for Beginners and Advanced Traders
Vertical spreads are a tactical approach used in options trading. This method involves buying and selling options on the same asset, but at different strike prices. Imagine it’s like a…
Understanding Vega in Options Trading: The Key to Pricing and Strategies
Vega is like a weather vane, showing options traders how the market winds might blow. It measures an option’s sensitivity to changes in ‘implied volatility’, giving an estimate of how…