One common way to help increase investment returns is to use deep in the money call options. These options have strike prices much lower than the current market price of the asset, giving them high ...

An option can be either in the money, out of the money or (very rarely) at the money. These three different statuses for options indicate the relationship of the option’s strike price and the price of ...

When selecting the right option to buy, a trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option. While the goal for "vanilla" buyers is ...

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 ...

When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works. Corrections and market downturns inevitably happen, so the key is to prepare for these before ...

When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...