Option is a contract which gives buyer the right, but not the obligation to buy or sell an underlying asset such as stock at a fixed price on or before a certain expiration date. There are two basic types of option contracts: Call and Put. A Call option will give the buyer the right to [...]

Option is a contract giving buyer the right, but not the obligation, to buy or sell an underlying asset like stock at a fixed price on or before a certain date. There are two types of option contracts: Call options and Put options. A Call option gives the buyer the right to buy underlying asset, [...]

LEAPS or Long-Term Equity Anticipation Securities is an options contracts with expiration dates longer than one year. The premiums for LEAPs are higher than common options of the same stock because the long expiration date gives the stock more time to make substantial move. Since LEAPS has longer expiration date, it is not as volatile [...]

Do you know that there are option strategy that can gives you monthly income? The income will be generated when you sell call option or sell put option. The best option strategy for income in my opinion is selling naked puts. It is called naked put because there is no position in underlying stock. If [...]

My recommended option books: The Bible of Options Strategies. The book covers all of today’s best income, volatility, synthetic, and sideways market strategies. It will show you why each strategy works, an when and how to use them. The book is written by Guy Cohen who has lots of  experience on both the US and [...]

Option Volatility & Pricing: Advanced Trading Strategies and Techniques is a book written by Sheldon Natenberg. He is an experienced option trader. His trading career began in 1982 as an independent market maker in equity options at the Chicago Board Options Exchange. He is also an independent floor trader, and an educator. As an educator, [...]

Black Scholes, also known as the Black Scholes Merton Model, is believed to be the base of all financial theories and is practically very useful in determining the value of all European call options. It has a practical importance in finding the asset values of all the heavily traded assets. It serves the base model [...]

The book, Options Writing Strategies for Extraordinary Returns is written by David Funk. The book is superbly written and is about call and put option writing techniques which can be used by investors so that they can make profits from the market irrespective of the direction the market is moving in. The book has options [...]

Black Scholes Model was developed in 1973 by Fisher Black, Robert Merton and Myron Scholes. It is widely used to determine the fair value of European-style options, which can only be exercised at the end of its life. Merton and Scholes received the 1997 Nobel Prize in Economics for their work. Black did not received [...]

If you are into a business management school and learning more about risk management in the field of business then you will certainly come across different Greeks that are very important to understand the fundamentals of risk in business. There are five different types of Greeks which are Delta, Theta, Rho, Gamma and Vega where [...]