Posted on October 25th, 2021
Options are very sensitive derivatives. They are sensitive to the price fluctuations of the underlying stock, as well as to the passage of time and to fluctuations in implied volatility (IV). There are others, but these are the big 3. In other words, if you buy an option, its value will change as the stock […]
Posted on September 6th, 2021
The S&P 500 have been moving up at a 45 degree since bottoming on October 23, 2020. Over the last month this blue-chip index has set a number of all-time highs and there’s a sleeper sector among the leaders of the pack. “Tech”, you say? “Healthcare”? Yes, they’ve been strong sectors over the past month […]
Posted on August 7th, 2021
Option prices are based upon sophisticated math. In fact, the mathematical model at the heart of option valuation, the Black-Scholes model won the Nobel Prize in 1997. The math is elegant, even beautiful to some and affords us the ability to reduce risk and make money in multiple directions. Some of the moving parts used […]
Posted on January 1st, 2021
Options trading is a way to enter an unpredictable market. Some benefits associated with this method are reduced costs and risk. An option controls 100 shares of stock for a fraction of the money needed to buy or short the stock. Types of Options The two types of options are Calls and Puts. The […]
