What Is Opening Range? The opening range is the high and low price for a given security during the first 30-60 minutes after the market opens. This range can be an indicator of market sentiment, trends, and price movements for the day’s trading session. Traders pay attention to a stock’s […]
Trading Basics
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What Is Short Interest? Short interest in the stock market refers to the number of shares that have been sold short but have not yet been covered or closed out. Short interest, which can be stated numerically or as a percentage, is a leading indicator of market mood. Extremely high […]
What Are Naked Calls in Options Trading? Naked calls are a type of option speculation strategy where an investor writes (sells) a call option without owning the underlying security. This strategy is also known as an uncovered call or an unhedged short call. It differs from a covered call strategy […]
Quad Witching – What Is Quadruple Witching Day? Quad witching refers to a date that occurs four times each calendar year. On quadruple witching days, stock index futures, stock index options, stock options, and single stock futures expire simultaneously. While stock options contracts and index options expire on the third […]
What Is the Options Price Reporting Authority (OPRA)? The Options Price Reporting Authority (OPRA) is a group of members from participating securities exchanges tasked with delivering last-sale option quotes and information from the exchanges. OPRA controls the process through which market participants share, aggregate, and distribute market data as a […]
What is a Swaption – Swap Option? A swaption, also known as a swap option, is an option to engage in a swap, such as an interest rate swap or another sort of swap. The buyer receives the right, but not the obligation, to enter into a specified swap agreement […]