Recent Chinese stimulus has driven Alibaba stock up, validating my recommendation to buy long-dated call options for explosive upside while capping downside. With BABA's implied volatility at extreme ...

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 ...

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 ...

Calendar spreads are a versatile options strategy that allows traders to capitalize on time decay and changes in implied ...