Recent Posts
Posted by
A Mahendra on
Mar 3rd, 2010
A bear put spread is a fundamental bearish spread in options trading, composed of two put options with different strike prices that expire in the same month, where a “HIGHER” put strike is purchased and a “LOWER” put strike is sold,...
Posted by
A Mahendra on
Mar 3rd, 2010
A bull put spread functions in the same manner as a bull call spread, except that put options are used rather than calls options to initiate the trade. In a bull put spread, a “LOWER” put strike is purchased and a “HIGHER” put strike is sold,...
Posted by
A Mahendra on
Jan 25th, 2010
Last week (Jan 19th to 22th) we saw a pullback in all three major indexes associated with the uncertainty surrounding regulation for the banking industry and whether Fed Chairman would be confirmed for a second term. Over a period of 4 days, the DOW dropped almost...
Posted by
A Mahendra on
Jan 10th, 2010
A BEAR CALL SPREAD (short call spread) is a fundamental bearish spread in options trading, composed of two call options with different strike prices that expire in the same month, where a HIGHER call strike is purchased and a LOWER call strike is sold, simultaneously....
Options 101
Options Greeks Explained: Theta

Given that options are a contract that expires at one point or another, the option greek “theta” provides a measure of time decay or the change in an options value with each passing day. Remember that at expiration, options only contain “real” value as the “time” value...
Advanced Strategies
Bear (Long) Put Spread

A bear put spread is a fundamental bearish spread in options trading, composed of two put options with different strike prices that expire in the same month, where a “HIGHER” put strike is purchased and a “LOWER” put strike is sold, simultaneously. Think of the basic definition of...
Market Thoughts
Jan 2010 Pullback
Last week (Jan 19th to 22th) we saw a pullback in all three major indexes associated with the uncertainty surrounding regulation for the banking industry and whether Fed Chairman would be confirmed for a second term. Over a period of 4 days, the DOW dropped almost 500 points since it peaked on 19th Jan,...