Time decay refers to the rate at which time reduces the value of an option. First, it's essential to understand that time decay is exponential and accelerates as expiration draws closer. The rate of ...

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 ...

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 ...

Options are versatile financial instruments that offer traders and investors a unique way to engage with the markets. Whether you're looking to amplify gains, hedge against potential losses, or ...

Get The FREE Spreadsheet! What happens if you sell put options on the NASDAQ 100 ETF (QQQ) instead of just buying and holding ...

Understanding the risks of shorting options and the importance of managing positions well for successful trading strategies.

The option Greeks (Delta, Gamma, Theta, Vega and Rho) are option trading indicators to predict price changes and manage risk in their trading strategy. Each Greek measures a different aspect of an ...