Learn how option premiums are determined by factors like stock price, time to expiration, and volatility. Master the basics ...

Implied volatility (IV) is a market's forecast that is often used to help traders determine the correct trading strategies ...

In options trading, the extrinsic value of an option represents the portion of the option's price that's based on factors other than the immediate value of exercising it. Also known as “time value,” ...

Options traders employ several trading strategies, but they all have the same objective: to make a profit. It’s possible to make money with options trading, and knowing how to calculate profitability ...

In options trading, assessing intrinsic and extrinsic value can help determine an option's price. Intrinsic value shows the profit from immediate exercise, while extrinsic value accounts for factors ...

IV crush explained in simple terms. Understand how implied volatility drops affect options pricing and how to calculate the ...

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 ...

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