European Style Option

A closing purchase is an order that you place to offset an existing short position. For example, If you sell a call option to open a new position, you would then need to offset or close that position with a closing order to buy. In other words, you would buy-to-close.

This is when you put on a short option position and hedge it with another option position or with long shares. This is essentially the opposite of a naked write.

How To Find The Options Chain Just pull up the stock chart and click on the “Trade” tab in the upper left corner. If you are on a mobile device then you can click here to see how to open the Thinkorswim Option Chain on a mobile device. The Option Chain Explained After you open…

When the price of the underlying stock is equal to the strike price of the option, the contract is At The Money. In the image below you can see that the current price of APPL is 139 and the red rectangles are highlighting the fact that the JUL 15th 139.00 Calls & Puts are currently…

Adjustments may be made to some of the standardized terms of outstanding options upon the occurrence of certain events related to the underlying security. The determination of whether to adjust outstanding options in response to a particular event, and, if so, what the adjustment should be, is made by OCC, taking into consideration policies established…

With the recent move by top brokers like TD Ameritrade to eliminate commissions there have been lots of new traders opening new accounts there. A lot of these traders are coming from using apps like Robinhood which are popular for their simplicity so starting to use a new platform like TOS can be quite a challenge….