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 ...

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 ...

Options contracts give the right to buy or sell stock at set prices, potentially profitable. There are call (buy) and put (sell) options; employee stock options are typically call options. Options' ...

As you may well be aware, it's very common for option players to close out their trades without ever touching the underlying equity. In other words, they're not looking to acquire or sell the ...

A bull put spread is an options strategy where you sell a put option at a higher price and buy one at a lower price for the same asset and expiration date. This helps generate income and limits losses ...

Hedging with options is a lot like car insurance. Stocks crash, cars crash and then the insurance bails them out, minus the premiums they pay. Three popular options strategies can be leveraged for ...