The Bjerksund-Stensland model is a key method for pricing American options. It helps investors determine optimal times for exercising options with dividends considered.

The option Greeks are key metrics that you need to know if you’re trading options. The Greeks help traders understand how options prices will move in response to changes in major factors such as 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 ...

The market is primed to go higher, supported by new directional put and call premium indicators. Directional premiums measure the amount of option money executed at the asking price, so they represent ...

Options greeks are a group of variables that affect option positions. They are typically referred to as delta, gamma, theta, vega, and Rho in the options market. These variables indicate how changes ...

Fuzzy set theory has emerged as a powerful tool to address the inherent imprecisions and uncertainties in financial modelling, notably in option pricing. By incorporating fuzziness into conventional ...

Conversion arbitrage is a risk-neutral strategy in options trading that exploits pricing inefficiencies in calls and puts. Learn how it uses put-call parity to uncover profit opportunities.

Options trading can often be complex, but understanding how these financial instruments are priced is crucial for anyone diving into this market. Options derive their value from an underlying asset, ...

YieldMax NVDA Option Income Strategy ETF offers high distribution yields by selling short-dated, slightly out-of-the-money calls on NVIDIA, but its attractiveness depends on NVIDIA's volatility. The ...

A put option, also known as a put, is a right given to a holder to sell an underlying stock at a decided price before a certain date. To understand the definition completely, it is important to ...

New regulations for the FX options market in the US and Europe will see all trades being reported to a central repository, as well as being centrally cleared and executed on fully transparent trading ...

We have spent a lot of time talking about ticks, spreads and trading costs in the equities markets. Today, we take a look at options trading. As we know, options markets are very different to stocks – ...