Saturday, April 21, 2007
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Options Pricing
Options Pricing:
* In-The-Money, At-The-Money, and Out-Of-The-Money Options (Options Moneyness)
* Option Price Components
* Option Chain
* Option Pricing: How Is Option Priced?
Options Volume, Open Interest & Bid-Ask Price Spread:
* Difference Between Option’s Volume and Open Interest
* How To Determine Options Liquidity?
Related Topics:
* FREE Trading Educational Videos You Should Not Miss
* Options Trading Basic – Part 1
* Understanding Implied Volatility (IV)
* Understanding Option’s Time Value
* Option Greeks
* Learning Candlestick Charts
* Learning Charts Patterns
Related Posts:
What is Stock Option?A stock option is a contract that gives the buyer of the contract the right, but not the obligation, to buy or sell a security at a certain price (i.e. strike price) on or before a… Read More
How To Determine Options Liquidity?Quite often I read articles which tell us that options liquidity can be measured by open interest. Because when options have high open interest, this means there are more people in… Read More
Difference Between Option’s Volume and Open InterestIn stock trading, you measure stock market activity & liquidity by volume. In options trading, there are two measurements: Open Interest & Volume.Unlike in stock trading, w… Read More
Option ChainOption Chain is a list of option prices of a particular underlying stock for various strike prices, expiration dates, and option types (calls or puts). This is where option traders… Read More
OPTION PRICING: How Is Option Priced? (Part 2)In Part 1, we know that there are 6 factors that affect option's price: option’s strike price, stock price, time to expiration, implied volatility, interest rate, and dividend.Neve… Read More
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