A Short Call Butterfly is implemented when an investor is expecting volatility in the underlying assets. This strategy is initiated to capture the movement outside the wings of the options at expiration. It is a limited risk and a limited reward stra
An option premium consists of components, namely Intrinsic value and the Time value. Option premium = Intrinsic value + Time value ITM ATM OTM INTRINSIC VALUE YES NO NO TIME VA
Trading in the stock market is never a straight road. At times, prices rise sharply, and at other times, they fall quickly. But there are also phases when the market does not move much at all. It trades within a narrow range, leaving investors wonder
Volatility is often viewed as a risk in financial markets, but for options traders, it can be a powerful opportunity. One strategy built specifically to benefit from sharp price swings is the Long Straddle. In 2026, markets are reacting rapidly to
What is Bull Call Spread Options Trading strategy? A Bull call spread option trading strategy involves two call options with different strike price but same expiration date. Bull call spread is also considered as a cheaper alternative to long call
Bullish options trading strategies are used when options trader expects the underlying assets to rise. It is very important to determine how much the underlying price will move higher and the timeframe in which the rally will occur in order to select
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