What factors does influence Options Pricing

One of the main factors of Options Pricing is the move of the underlying. The more volatile the underlying is the more expensive the option become. There are other factor which determines the price of the option as well As we approach the core of earnings season, and if you are going to trade options around such events, it is vital […]

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Time Decay is your best Friend

We benefit from options because of Time Decay. Time decay is represented by a Greek term know as Theta. Don’t worry too much about the Greeks for now, we will take a look at it a later on. Theta is a crucial component for options traders that decide to sell options. They will receive options premium to take on risk. […]

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What determines the Option Price and Value

There are several factors that determine the option price of a contract. Most traders are trying to take advantage of directional moves in the underlying stock, and that is the primary driver of the price of an options contract, especially its intrinsic value. But the extrinsic value of an option, also known as its time value, is affected by time […]

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