INSIGHTS
How options work, explained plainly.
Educational articles on options, volatility and risk, written by our research team. Articles do not contain buy or sell recommendations.
INSIGHTS
Educational articles on options, volatility and risk, written by our research team. Articles do not contain buy or sell recommendations.
Open interest counts contracts that remain open. It says nothing on its own about who is buying or selling, and reading it as a directional signal is a common mistake.
Premiums often rise into results, policy meetings and budget days, then fall once the event passes. How that affects option buyers and sellers differently.
A stop-loss is an instruction, not a guaranteed price. On expiry days, thin liquidity and fast moves can fill orders well beyond the level you set.
From November 2024 each exchange can offer weekly expiry on only one benchmark index. What changed for index options traders and what stayed the same.
Time decay works against option buyers each session. Sizing positions so that a full loss of premium stays within your limits.
A research note sets out an analysis with levels and risks. It is not personalised advice and does not consider your finances or goals.