How to Read an Option Chain, Column by Column
An option chain lists every strike and expiration for one stock. See what the bid, ask, volume, implied volatility and delta columns each measure.
#options basics
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The 3-5-7 Rule in Options, Examined
The 3-5-7 rule caps risk at 3% per trade, 5% per underlying and 7% of the account. Where the folk rule came from, and how it holds up against the data.
What Are Put Options?
A put option is the right to sell 100 shares at a set strike price. Watch one real SPY put move as the stock falls, and see what its price is built from.