OPTIONS

Saturday, April 21, 2007

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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