Tag: Options trading
What is the CBOE Volatility Index (VIX) and Why It’s Important to Option Traders
The CBOE Volatility Index, or VIX, is an index that shows the stock market’s expected 30-day volatility. It...
How to Value an Option?
The value of an option, also known as the option premium, is the price paid by the buyer...
What is the Black-Scholes Model and Formula – Why it Matters in Options Trading
The Black Scholes model, or Black Scholes formula, is the world’s most well-known pricing model for options. The...
The Difference Between Buying and Selling Put Options
Put options are a contract between a buyer, known as the holder, and a seller, known as the...
Option Premium – Everything You Need to Know
An option premium is the price paid by the buyer to the seller for an option contract. Premiums...
Expiration Date – Options Trading
The expiration date of an options contract is the last day at which the buyer may exercise his...
Introducing Basic Examples of Trading Options — Calls and Puts
Options are contracts between a buyer, known as the option holder, and a seller, who is the option...
American vs European Options – The Similarities and Differences
Options can be divided into two broad categories: American-style options and European-style options. These two types of options...
Bull Call Spread and Bull Put Spread – Option Trading Strategies
The bull call spread and the bull put spread are option strategies used when an investor expects the...
Straddle vs Strangle – Option Trading Strategy
Straddles and strangles are option strategies that allow an investor to profit from significant price moves either upward...