I recently discussed the ability to use implied volatility to calculate the probability of a successful outcome for any given option trade. To review briefly, the essential concepts a trader must ...

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

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. The plot of at-the-money Put and Call prices versus expiration dates roughly describes a horizontal parabolic ...

Editor’s note: This article uses a simplified example to illustrate how a lattice model works. In the exhibits, the option term is only four years—much shorter than the 10-year life of a typical ...

On the latest episode of the Schaeffer's Market Mashup podcast, Patrick is joined by author, analyst, and options trader extraordinaire Don Fishback to discuss his work on options valuation and ...

The options market is currently pricing in an 8-10% probability of a 30% or greater decline in the S&P 500 at some point in ...

The great thing about options is their versatility. Traders who learn how to trade options can create strategies that meet their particular criteria for risk, reward and probability of success with a ...

While the remarkable rise of gold and silver this year has dramatically elevated the underlying mining complex, the market is a cruelly chaotic and non-linear environment. As such, a steep correction ...

The dangers of zero day options trading highlighted through the Captain Condor wipeout reveal the fragility of frequent small wins that can be wiped out by a single large ...

This paper documents that riskier firms with higher idiosyncratic volatility grant more stock options to nonexecutive employees. Standard models in the literature cannot easily explain this pattern; a ...