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Tackle Today: The Price is Right 🏷

March 13, 2019

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≈ Always right. ≈

“A fortune in fabulous prizes may go to these people today if they know when The Price is Right! Sandy Flornour, stand up! Paul Levine, stand up! Connie Dunnall, stand up! Myra Carter, stand up! And all four of you, come on down; you’re the first contestants on The Price is Right! And now, here is the star of The Price is Right, Bob Barker!”

The Strike Price is something great. It is the price at which buyers and sellers agree upon buying or selling a particular underlying asset. No more, no less. The price is right.

Options are contracts, therefore, there are terms to it that you must read carefully before signing. The strike price is one of them. The other two are the expiration date and the underlying asset.

— “But I am an options trader and I never signed anything.”

Yes, you did. As soon as you click *SEND* and you hear that *TILILONN* sound coming through the speakers, that’s you and the person (or robot) on the other side of the brokerage platform signing the contract.

Deal.

If you bought the contract, you have rights:
– If you bought a Call option, you have the right to buy the underlying asset at the strike price.
– If you bought a Put option, you have the right to sell the underlying asset at the strike price.

If you sold the contract, you have obligations:
– If you sold a Call option, you have the obligation to sell the underlying asset at the strike price.
– If you sold a Put option, you have the obligation to buy the underlying asset at the strike price.

See? No more, no less. The price is always right.


Chart of the Day

Strike Price

Here’s a screenshot of a typical option chain. This one is from the Tastyworks platform. The strike prices sit right in the middle between the Call side and the Put side. Those are all the prices available for that particular asset at that specific expiration date.


Video of the day

What is Strike Price

The Strike Price is the exact price that a trader agrees on to buy or sell the underlying asset. The Strike Price is also called Exercise Price.


Today’s line up

Traders Lounge 11PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show Replay

If you missed last night’s episode where Coaches Mark Justice & Noah Davidson talked about how to trade the nice breakouts forming in the market right now or would like to watch it again, check it out here.

Cash Flow Condors MasterMind Group 8:30PM EST

The Condors for Cash Flow system is a high probability option selling strategy designed to generate passive income over time. Join us tonight to go over next month’s orders.

Halftime Report 12:30PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

Market Recap

The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.


Trading Justice Episode 312: Darryl Lyons on Behavioral Finance

Ever curious what are the biggest mistakes a retiree makes? What are some of the items to consider before you retire? In this episode of the Trading Justice Podcast, Tim Justice interviews Darryl Lyons about money, markets and retirement planning. Listen in to the podcast and get some actionable ideas for yourself about retirement and financial planning.

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