Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

Long call and covered call approaches both involve call options, but they serve very different purposes in a portfolio. A long call is typically a speculative strategy, allowing investors to profit ...

Beyond the well-documented size premium, small caps may also offer a key advantage for income-focused investors. When liquidity conditions are healthy and a robust options market exists, buy-write or ...

What is crypto options trading? A crypto options contract grants the holder the right, but not the obligation, to purchase (call option) or sell (put option) an underlying cryptocurrency at a ...

Interest rate hikes can have a significant impact on the pricing of options. Therefore, understanding how interest rate changes can impact option prices is important, as it can affect trading ...

Derivatives are instruments that obtain value based on the price of an underlying asset, such as a stock, bond, ETF, or commodity. Stock option contracts are securities that give traders the choice of ...

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 ...