PowerTrade

Expected value (EV) is the sum of the probability weighted outcomes. To explain further, let's use a simple example and assume you have five pieces of paper in a velvet bag, all of them numbered 1-5. If you pull any one number, you will

Open Interest (OI) is the number of contracts or open contracts outstanding. For example, Person A can buy a Call from Person B or Person B can sell a Call to Person A. It doesn’t matter how you slice it, that transaction increases

The bid-ask spread is the difference between the prices quoted for an immediate offer and bid. Let's assume we buy an option and it becomes in the money, can we sell it immediately? Sometimes. It depends on how liquid the option is. We've underlined

There are two main types of term structure: Backwardation and Contango. Backwardation is when the near term expirations have a higher IV than the further out expirations. Contango is more common, this is when the near term expiration has a lower IV than the

A strangle is an options strategy that involves holding both positions in a call and a put option with different strike prices, but with the same expiration date and underlying asset. For ex: you sell an out of the money put and an out

The terms Skew and IV tend to be used often in the options trading market so in today's PowerKnowledge, we explain what skew is and how it's used when trading options. Skew refers to Volatility, or IV. In the option world the price of

Remember that Theta is simply the time value of an option. If you have positive Theta, your option gains value over time and if you have negative Theta, your option loses value over time. We can capitalize on the Theta farming strategy by theoretically

A short put spread is an alternative to the short put. Ex: Sell one put slightly OTM, buy one put even further OTM. To run a short put spread, here's how to do it: 1. Sell an OTM put. 2. Choose the Delta (up

A call spread is a simple option spread strategy when an equal number of call options are bought and sold at the same time. Ex: buy 1 call close to the ATM strike and sell 1 call further up the strike ladder. As we

BTC is regaining its strength with new all time highs in the final quarter of 2021 and by all accounts it may appear to be a bull market, however if you aren’t so sure you could use a strategy called the 'put fly'.

A covered call is an options strategy used to generate income through options premiums. First, let's review what call options are. A call gives the buyer the ability to buy 1 BTC (per contract) at the strike price stated. So as a buyer, you