Positron Investments

Trading & Education in Options, Futures, Stocks, Forex
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Options basics

  • What is a call option
  • What is a put option
  • Option expiration
  • Option strike price
  • Option premium
  • Moneyness
  • Option buyer vs option writer
  • Options positions
  • American & European style options
  • Intrinsic value & time value
  • Volume & open interest
  • Options chain
  • Payoff & profit diagrams
  • How to interpret a payoff-profit diagram
  • Historical volatility
  • Options pricing
  • Implied volatility
  • Sensitivity factors (Greek letters)
  • Greek letters: Delta
  • Greek letters: Theta
  • Greek letters: Vega
  • Greek letters: Rho
  • Greek letters: Gamma
  • Position Greeks
  • Put-call parity
  • Trading options

Option expiration

The life of an option is limited to its expiration date. After that date it ceases to exist. US stock options expire on the third Friday of their expiration month. If for example an option expires in June of 2018 then the exact date will be June 15 2018.

Expiration dates for options on a particular stock can be quite close or quite distant from the date that the option gets listed. At least two near months options expiration exist in order to fulfil the needs of short term traders and hedgers. At many stocks there are options that have a quite distant expiration date. These are called LEAPS (long term equity anticipation securities) and they expire at least one year from the first day they are traded. 

Links

  • Bloomberg.com
  • Capital.gr
  • chartmill.com
  • Finviz.com
  • Forexfactory.com
  • Freestockcharts.com
  • Yahoo Finance

Recent posts

  • Possible breakdown in Greek stock exchange
  • Application of a simple strategy in EUR/USD
  • S&P 500 runs out of fuel
  • Short term downtrend in Greek stock exchange
  • Possible upward movement in S&P 500

Blog categories

  • Day/swing trades
  • Economy/Politics
  • Trading signals
  • Trading strategies

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