by Profitmart Securities | Jun 30, 2025 | Stock Market
Options arbitrage involves exploiting price inconsistencies between related options and their underlying assets. Central to many strategies is put-call parity, a theoretical relationship linking call and put prices with the underlying asset’s price. When market...
by Profitmart Securities | Jun 30, 2025 | Stock Market
The binomial option pricing model is a discrete‐time framework for estimating the fair value of call and put options. It breaks the option’s life into multiple intervals, allowing the underlying asset price to move up or down at each step. By modeling possible future...
by Profitmart Securities | Jun 30, 2025 | Stock Market
Same-day expiry options, or 0DTE strategies, have drawn interest for their rapid time decay and potential for fine-tuned profit targeting. Backtesting these strategies involves simulating historical trades to evaluate performance under varied market conditions. This...
by Profitmart Securities | Jun 30, 2025 | Stock Market
Unusual options activity (UOA) occurs when options volume or open interest spikes markedly above historical norms. Traders monitor UOA to detect large, potentially informed positions that may precede significant underlying moves. Market participants can observe where...
by Profitmart Securities | Jun 14, 2025 | Stock Market
Identifying appropriate stocks is a crucial, fundamental step in options trading. A systematic approach carefully grounded in liquidity analysis, volatility assessment, sector outlook, earnings track record, and open interest patterns enables disciplined stock...
by Profitmart Securities | Jun 14, 2025 | Stock Market
Virtual trading—also known as paper trading—allows aspiring options traders to develop skills without risking capital. Virtual trading platforms provide simulated accounts funded with play money. They replicate live market prices and offer access to real-time or...
