Trading options online now matters because apps offer advanced tools, simulators, and option value calculators to help ...

On the latest Market Mashup, Patrick is back with author, analyst, and options trader extraordinaire Don Fishback to discuss his work on options valuation and probability over the years. Don shares ...

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,” ...

I propose a model in which the price of an option is partly determined by macro-finance variables. In an application using an index of current business conditions, the new model outperforms existing ...

In options trading, assessing intrinsic and extrinsic value can help determine an option's price. Intrinsic value shows the profit from immediate exercise, while extrinsic value accounts for factors ...

We propose a method for selling options that defies many myths around options selling. We analyzed options prices using statistical modelling and calculus to improve the "expected value" of trading ...

Time decay refers to the rate at which time reduces the value of an option. First, it's essential to understand that time decay is exponential and accelerates as expiration draws closer. The rate of ...

The research views expressed herein are those of the author and do not necessarily represent the views of CME Group or its affiliates. All examples in this presentation are hypothetical ...

Derivatives are instruments that obtain value based on the price of an underlying asset, such as a stock, bond, ETF, or commodity. Stock option contracts are securities that give traders the choice of ...

An option's price is made up of two components. What are they, and how do they intersect? For investors interested in getting started with options, the way these instruments work can seem intimidating ...