Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

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 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 2026, according to a new analysis from TS Lombard economist Steven Blitz.

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 – ...

The Black-Scholes model remains the 2026 gold standard for pricing trillions in derivatives. It uses five key data points: stock price, strike, time, interest rates, and volatility. This math-heavy ...