In options trading, the extrinsic value of an option represents the portion of the option's price that's based on factors other than the immediate value of exercising it. Also known as “time value,” ...

Buying stock or even deep-in-the money calls on high-priced stocks like NVDA can require a lot of capital. A ZEBRA option spread simulates a long stock position at a lower cost with the same upside as ...

Option price is the value of an option contract. The option price is impacted by intrinsic value and extrinsic value. Intrinsic value is determined by the difference between the strike price of the ...

An option price is the value of an option contract. The option price is determined by the extrinsic and intrinsic value of the option contract. Options are contracts that allow investors to buy or ...

Option pricing may seem complicated at first, as contract values are derived from a few different factors. Specifically, option premiums are based on the Nobel Prize-winning Black-Scholes model, which ...