Implied volatility, time decay, and delta all play crucial roles in option prices As you may well be aware, it's very common for option players to close out their trades without ever touching the ...

As you may well be aware, it's very common for option players to close out their trades without ever touching the underlying equity. In other words, they're not looking to acquire or sell the ...

The Bjerksund-Stensland model is a key method for pricing American options. It helps investors determine optimal times for exercising options with dividends considered.

The option Greeks are key metrics that you need to know if you’re trading options. The Greeks help traders understand how options prices will move in response to changes in major factors such as the ...

Scholes for options to futures spot pricing. Understand pricing mechanisms for better financial decision-making.

One of the major factors that influences the price of an option is implied volatility (IV). In simplest terms, implied volatility is the anticipated movement of an underlying equity over a certain ...

The strike price is the price at which a put or call option can be exercised. It's also known as the exercise price. Picking the strike price is one of three key decisions an investor must make when ...

An option price is the value of an option contract. The option price is determined by the extrinsic and intrinsic value of the option contract. Options are contracts that allow investors to buy or ...

The market is primed to go higher, supported by new directional put and call premium indicators. Directional premiums measure the amount of option money executed at the asking price, so they represent ...

Tesla, Inc.'s stock price is disconnected from its fundamental value. The high daily volume of options trading could be driving the stock price higher. I explain here how this works and why it makes ...