Tag: trading tiers

Introduction:Options laddering is a popular strategy used by traders to diversify their options holdings and manage risk. When implementing this strategy, the selection of strike prices is crucial. In this article, we will explore how moneyness affects strike price selection in options laddering and its impact on risk and potential returns. Understanding Moneyness in Options:Moneyness refers to the relationship between an option's strike price and the current price of the underlying asset. It helps determine the intrinsic value and potential profitability of the option. There are three categories of moneyness: a)...