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stock_options_trading

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[{"from": "human", "value": "As a trader"}, {"from": "gpt", "value": "on what should your focus be? ,Becoming a better trader"}]

[{"from": "human", "value": "What is options trading?"}, {"from": "gpt", "value": "The buying and selling of stock option contracts"}]

[{"from": "human", "value": "Describe a call"}, {"from": "gpt", "value": "A call gives you the right, but not the obligation, to buy stocks at a set price"}]

[{"from": "human", "value": "Describe a put"}, {"from": "gpt", "value": "A put gives you the right, but not the obligation, to sell stocks at a set price, on or before a given date"}]

[{"from": "human", "value": "What are the 2 most important factors to consider when buying and selling options contracts?"}, {"from": "gpt", "value": "strike pricetime left until expiration"}]

[{"from": "human", "value": "What is the strike price?"}, {"from": "gpt", "value": "The price at which stocks are valued for a particular contract"}]

[{"from": "human", "value": "What is another term for the market price of a stock option?"}, {"from": "gpt", "value": "premium or ask price"}]

[{"from": "human", "value": "How does an increase in the value of a security affect the premium of its call options?"}, {"from": "gpt", "value": "The premium for those options will increase"}]

[{"from": "human", "value": "What happens to the premium of a put option when its underlying stock's value decreases?"}, {"from": "gpt", "value": "The premium goes up"}]

[{"from": "human", "value": "What can be concluded when a call option's premium decreases?"}, {"from": "gpt", "value": "The value of the underlying stock has decreased"}]

[{"from": "human", "value": "What can be concluded when the value of a put option's premium decreases?"}, {"from": "gpt", "value": "The value of the underlying stocks has increased"}]

[{"from": "human", "value": "What 2 factors does an option trader have control over when purchasing stock option contracts?"}, {"from": "gpt", "value": "strike pricetime until expiration"}]

[{"from": "human", "value": "Another name for the exercise price"}, {"from": "gpt", "value": "strike price"}]

[{"from": "human", "value": "What is the interval for strike prices less than $25?"}, {"from": "gpt", "value": "$2.50"}]

[{"from": "human", "value": "What is the interval for strike prices between $25 and $200?"}, {"from": "gpt", "value": "$5"}]

[{"from": "human", "value": "What is the interval for strike prices above $200?"}, {"from": "gpt", "value": "$10"}]

[{"from": "human", "value": "When is a call option ITM?"}, {"from": "gpt", "value": "When the underlying stock price is greater than the strike price"}]

[{"from": "human", "value": "When is a put option ITM?"}, {"from": "gpt", "value": "When the strike price is above the current stock price"}]

[{"from": "human", "value": "For a call option"}, {"from": "gpt", "value": "what price relationship exists when the strike price is above the current stock price?,The contract is OTM"}]

[{"from": "human", "value": "For a put option"}, {"from": "gpt", "value": "what price relationship exists when the strike price is above the current stock price?,The contract is ITM"}]

[{"from": "human", "value": "What are the 3 relationships that can exist between a contract's strike price and the stock price?"}, {"from": "gpt", "value": "In-The-MoneyAt-The-MoneyOut-Of-The-Money"}]

[{"from": "human", "value": "What is the price relationship when a strike price and a stock price are the same?"}, {"from": "gpt", "value": "ATM"}]

[{"from": "human", "value": "Which strike/stock price relationship has the highest costs?"}, {"from": "gpt", "value": "ITM contracts"}]

[{"from": "human", "value": "How does the more an option is OTM affect its premium?"}, {"from": "gpt", "value": "The more OTM, the lower the option price"}]

[{"from": "human", "value": "Between ITM"}, {"from": "gpt", "value": "ATM, and OTM options, which is the riskiest?,OTM options - stocks require a larger movement before they are ITM"}]

[{"from": "human", "value": "Which strike/stock price relationship has the slowest movement in option price?"}, {"from": "gpt", "value": "OTM"}]

[{"from": "human", "value": "Which strike/stock price relationship has the fastest movement in price?"}, {"from": "gpt", "value": "ITM"}]

[{"from": "human", "value": "What is the best strike/stock price relationship to trade with for beginners?"}, {"from": "gpt", "value": "ATM"}]

[{"from": "human", "value": "What is another name for the time value of an option?"}, {"from": "gpt", "value": "Extrinsic value"}]

[{"from": "human", "value": "What is the extrinsic value of an option?"}, {"from": "gpt", "value": "The dollar value placed on the remaining life of the option"}]

[{"from": "human", "value": "What is the intrinsic value of an option that is OTM?"}, {"from": "gpt", "value": "0 The option is of no real value"}]

[{"from": "human", "value": "What does intrinsic value refer to?"}, {"from": "gpt", "value": "The real value of the option"}]

[{"from": "human", "value": "Explain time decay in terms of options trading"}, {"from": "gpt", "value": "The decrease in time value of an option due to the option approaching its expiration date"}]

[{"from": "human", "value": "What does it mean that an option is a wasting asset?"}, {"from": "gpt", "value": "Options are subject to time decay, and risk becoming worthless"}]

[{"from": "human", "value": "What happens to an option's premium the further it is away from expiry?"}, {"from": "gpt", "value": "The premium increases"}]

[{"from": "human", "value": "What is option volatility?"}, {"from": "gpt", "value": "The measure of risk or uncertainty of an option"}]

[{"from": "human", "value": "How does having a high volatility affect an option's premium?"}, {"from": "gpt", "value": "High volatility will inflate the premium for that option"}]

[{"from": "human", "value": "How does a low volatility affect an option's ask price?"}, {"from": "gpt", "value": "Low volatility results in a lower ask price"}]

[{"from": "human", "value": "What two components make up volatility for stock options?"}, {"from": "gpt", "value": "historical volatility implied volatility"}]

[{"from": "human", "value": "For options"}, {"from": "gpt", "value": "what is historical volatility?,How volatile the underlying stock has been in the past"}]

[{"from": "human", "value": "For options"}, {"from": "gpt", "value": "what is implied volatility?,The market's view on how volatile the underlying stocks will be in the future"}]

[{"from": "human", "value": "What does 'chasing strength' refer to?"}, {"from": "gpt", "value": "Purchasing an option with a price that's inflated due to high volatility Chasing what appears to be a strong option once its volatility has already increased"}]

[{"from": "human", "value": "What is the main risk of purchasing a volatile option?"}, {"from": "gpt", "value": "Losing money quickly through purchasing an option with an inflated price"}]

[{"from": "human", "value": "What benefit is there to purchasing volatile options?"}, {"from": "gpt", "value": "Volatile options have the most potential for quick gains (but also losses)"}]

[{"from": "human", "value": "What are the five Greeks?"}, {"from": "gpt", "value": "delta gammatheta vegarho"}]

[{"from": "human", "value": "What is option delta?"}, {"from": "gpt", "value": "How much an option's premium changes for each $1 change to the underlying stock"}]

[{"from": "human", "value": "What is option gamma?"}, {"from": "gpt", "value": "The amount delta will change for every $1 movement of the underlying stock"}]

[{"from": "human", "value": "What is option theta?"}, {"from": "gpt", "value": "The value that an option loses each day it approaches expiration (t for time)"}]

[{"from": "human", "value": "What is option vega?"}, {"from": "gpt", "value": "How much the option premium will change as the volatility of the underlying stock changes (v = volatility)"}]

[{"from": "human", "value": "What is option rho?"}, {"from": "gpt", "value": "How much the stock option price will change as the interest rate changes (r = rate)"}]

[{"from": "human", "value": "What is a bear market?"}, {"from": "gpt", "value": "A market where stocks are trending down in value"}]

[{"from": "human", "value": "What is a bullish strategy?"}, {"from": "gpt", "value": "A strategy where you think stocks will rise in price"}]

[{"from": "human", "value": "What is the name given to downward trending markets?"}, {"from": "gpt", "value": "Bear markets"}]

[{"from": "human", "value": "What is the name given to upward trending markets?"}, {"from": "gpt", "value": "Bull markets"}]

[{"from": "human", "value": "What are neutral stocks?"}, {"from": "gpt", "value": "Stocks that aren't trending up or down"}]

[{"from": "human", "value": "What is another name for neutral stocks?"}, {"from": "gpt", "value": "sideways trending stocks or channeling stocks"}]

[{"from": "human", "value": "What is a Married Put?"}, {"from": "gpt", "value": "When an investor purchases a put option, and at the same time purchases the same number of underlying stocks"}]

[{"from": "human", "value": "Why would an investor utilise a Married Put strategy?"}, {"from": "gpt", "value": "To hedge their investment against a decrease in the value of their stocks"}]

[{"from": "human", "value": "In a Married Put"}, {"from": "gpt", "value": "what is the most that can be lost?,The cost of the put option"}]

[{"from": "human", "value": "What is the strategy behind a Married Put?"}, {"from": "gpt", "value": "When the underlying stocks decrease in value, the put can be exercised so that the investor sells their stocks at the original purchase price - the same as the put's strike price"}]

[{"from": "human", "value": "What is hedging?"}, {"from": "gpt", "value": "An investment taken out to limit the risk of another investment"}]

[{"from": "human", "value": "What is a Protective Put?"}, {"from": "gpt", "value": "When an investor purchases a put option to protect profits of stocks they already own"}]

[{"from": "human", "value": "In the Protective Put strategy"}, {"from": "gpt", "value": "what does 'rolling up your options' refer to?,Purchasing put options on a rolling basis to lock in the increase in value of your stocks"}]

[{"from": "human", "value": "How do Protective Puts and Married Puts differ?"}, {"from": "gpt", "value": "In a Married Put, stocks are purchased when the put is purchased In a Protective Put, a put is purchased to protect stocks already owned"}]

[{"from": "human", "value": "What does 'writing' refer to for stock options?"}, {"from": "gpt", "value": "selling stock options"}]

[{"from": "human", "value": "What is a covered call option?"}, {"from": "gpt", "value": "When the option seller owns the underlying stock the option is derived from"}]

[{"from": "human", "value": "What is a naked call option?"}, {"from": "gpt", "value": "When an option seller writes an option for stocks they don't own"}]

[{"from": "human", "value": "When writing call options"}, {"from": "gpt", "value": "which strategy comes with a higher risk?,naked call options have a higher risk"}]

[{"from": "human", "value": "Why is writing naked call options risky?"}, {"from": "gpt", "value": "You are writing contracts for stocks you do not own, and are obligated to purchase the underlying stocks should a buyer exercise your contract"}]

[{"from": "human", "value": "What is the technical term for analysing stock charts?"}, {"from": "gpt", "value": "Technical analysis"}]

[{"from": "human", "value": "What is technical analysis?"}, {"from": "gpt", "value": "The analysis of stock charts"}]

[{"from": "human", "value": "What is a stock chart?"}, {"from": "gpt", "value": "A graphical representation of a stock's price over a period of time"}]

[{"from": "human", "value": "On a stock chart"}, {"from": "gpt", "value": "what does volume refer to?,The number of shares traded in a period of time"}]

[{"from": "human", "value": "What is the name given to 'the number of stocks traded over a particular period'?"}, {"from": "gpt", "value": "volume"}]

[{"from": "human", "value": "On a stock chart"}, {"from": "gpt", "value": "what does 'change' refer to?,The difference in a stock's latest closing price and its current price"}]

[{"from": "human", "value": "What does a spike in volume indicate?"}, {"from": "gpt", "value": "There have been many trades on the stock for that period, and thus the movement of the stock should be taken seriously"}]

[{"from": "human", "value": "What is an OHLC bar chart?"}, {"from": "gpt", "value": "A bar chart showing Open, High, Low, and Close values for stock over a time period"}]

[{"from": "human", "value": "What does 'price action' refer to?"}, {"from": "gpt", "value": "The movement of a stock's price"}]

[{"from": "human", "value": "What does each bar in a weekly price chart represent?"}, {"from": "gpt", "value": "One week's worth of price action for that stock"}]

[{"from": "human", "value": "In a bar chart"}, {"from": "gpt", "value": "what does OHLC refer to?,The open, high, low, and close values for a particular time period"}]

[{"from": "human", "value": "How does a line chart differ from a bar or candlestick chart?"}, {"from": "gpt", "value": "Line charts only show closing values"}]

[{"from": "human", "value": "What is a drawback of using a line chart?"}, {"from": "gpt", "value": "Line charts do not allow you to evaluate the price range for the period"}]

[{"from": "human", "value": "In a bar chart"}, {"from": "gpt", "value": "what does the horizontal line on the right of the bar represent?,The closing price of the stock for that particular period of time"}]

[{"from": "human", "value": "<span style=\"line-height: 13.1999998092651px;\">In a bar chart"}, {"from": "gpt", "value": "what does the horizontal line on the left of the bar represent?</span>,The opening price for the stock for a particular period of time"}]

[{"from": "human", "value": "What does 'the body' refer to for candlestick charts?"}, {"from": "gpt", "value": "The rectangular part of the graph, representing the price range between the opening and closing prices for the period of time"}]

[{"from": "human", "value": "In a candlestick chart"}, {"from": "gpt", "value": "what do 'the shadows' refer to?,The tips or tails of the chart"}]

[{"from": "human", "value": "What do the shadows of a candlestick chart represent?"}, {"from": "gpt", "value": "The high and low prices for the period"}]

[{"from": "human", "value": "What does a white or green body mean for a candlestick chart?"}, {"from": "gpt", "value": "The stock closed higher than it opened"}]

[{"from": "human", "value": "What does a black or red body mean for a candlestick chart?"}, {"from": "gpt", "value": "The stock closed lower than its opening price"}]

[{"from": "human", "value": "For a white or green candlestick chart"}, {"from": "gpt", "value": "what does the top of the body represent?,The closing price for the period"}]

[{"from": "human", "value": "<span style=\"line-height: 13.1999998092651px;\">For a red or black candlestick chart"}, {"from": "gpt", "value": "what does the top of the body represent?</span>,The opening price for the period"}]

[{"from": "human", "value": "What does a large body for a candlestick chart represent?"}, {"from": "gpt", "value": "A large difference between the opening and closing prices for that period"}]

[{"from": "human", "value": "Which three time frames can a trendline be narrowed down into?"}, {"from": "gpt", "value": "short termintermediate termlong term"}]

[{"from": "human", "value": "What is important when it comes to using timeframes for trendlines?"}, {"from": "gpt", "value": "Using short, intermediate, and long term time frames to get a bigger picture of the stock"}]

[{"from": "human", "value": "What is a trendline?"}, {"from": "gpt", "value": "A straight line on a stock chart drawn along at least two highs, or two lows"}]

[{"from": "human", "value": "What do more points on a trendline indicate?"}, {"from": "gpt", "value": "The more points, the more significant the trendline"}]

[{"from": "human", "value": "What increases the significance of a trendline?"}, {"from": "gpt", "value": "The more prices that touch the line, the more significant it is"}]

[{"from": "human", "value": "What information can be gleaned from many prices touching a trendline?"}, {"from": "gpt", "value": "The trendline is significant of a real trend"}]

[{"from": "human", "value": "What are trendlines used for?"}, {"from": "gpt", "value": "Showing the direction of a stock's price"}]

[{"from": "human", "value": "What three types of trend are there?"}, {"from": "gpt", "value": "downward / bearishupward / bullishside to side / channeling"}]