Tuesday, December 23, 2025

Tag: time value of option

Mastering Derivatives: Futures For Directional Bets, Options For Time Decay

Trade setups are typical for not-so-disciplined traders. These traders should prefer futures positions when they are confident on...

Mastering Derivatives: What If Immediate ITM Call Is Cheaper?

To initiate a long call position, you typically select three strikes immediately above the underlying’s current price and...

Mastering Derivatives: Options Trading: Reward-to-risk or reward-to-loss ratio?

Previously in this column, we discussed reward-to-risk ratio for options trading. We showed why option positions may have...