Pooja Tanwani (Individual Contributor) 
What is a Long Call Option Strategy? The long call option strategy is a one-leg strategy, which consists of buying call options. A trader buys a call option because he is bullish on the underlying stock. He bets that the underlying security will move above the strike price before the expiry of the contract. With … Read more
What is the Synthetic Long Stock Option Strategy? The synthetic long stock is a two-legged strategy. It consists of buying an at-the-money (ATM) call option and selling ATM put options of the same underlying asset. Both the contracts should have the same strike price and expiration date. There must be an equal quantity of call … Read more
What is a Bull Call Spread? A bull call spread is an options strategy that consists of buying a call option with a lower strike price and at the same time selling a call option with a higher strike price. Both the call options should be of the same underlying asset and expiry date. Traders … Read more
What is the Bear Put Spread? A bear put spread is an options strategy that consists of buying one put option with a higher strike price and at the same time selling one put option with a lower strike price. Both the put contracts have the same underlying stock and expiration date. Traders can establish … Read more
What are the Options? Options are derivative financial instruments that derived their value from underlying assets. Nowadays, trading in options has become very popular. People trade options mainly because of leverage. With little margin of capital, you can create a substantial amount of wealth. But one must not forget the risk-reward ratio associated with options. … Read more
Robinhood is a free-trading app that allows investors to trade stocks, options, exchange-traded funds, ADRs, and cryptocurrency at $0 commissions or fees. It was founded in 2013 by Vladimir Tenev and Baiju Bhatt. It has launched a mobile app in 2015. Its mobile app is easy to use. In 2017, Robinhood also launched its website. … Read more
The extent to which earnings are manipulated has long been a question of interest to analysts, regulators, researchers, and other investment professionals. To address this issue, Professor Messod Beneish developed the Beneish M-score model and published it in a paper in June 1999 called The Detection of Earnings Manipulation. Beneish M score is a Mathematical … Read more
What is a Diagonal Spread? A Diagonal Spread is the options strategy that combines horizontal spread (calendar spread) and vertical spread. It involves simultaneously buying and selling of the same class of options with different strikes and expiration dates. The term “diagonal” comes from the options chain layout where the two options contract with different … Read more
What is the Penny stock? Penny stocks are the equity securities of a small company that trades below $5. Most of the penny stocks trade through the OTC Bulletin Board (OTCBB). Generally, small companies and start-ups with low market capitalization offer penny stocks to raise the initial funds. Investors get attracted to penny stock because … Read more
What is the open interest? Open interest (OI) is the total number of outstanding contracts of the derivative products (futures and options) in the market. Market participants are still holding their position on these contracts. Traders predict market sentiments by analyzing open interest. It gives the signal on entry and exit of the market participants. … Read more
