Option Pricing

  1. Implied vs. Historical Volatility: The Main Differences

    Discover the differences between historical and implied volatility, and how the two ...
  2. How Goldman Sachs Won Big On Earnings This Week

    Goldman Sachs' strategy of buying call options has seen big returns this earnings ...
  3. Will VIX Values Remain Low?

    VIX values have dipped since the middle of February as stocks have rallied. Will ...
  4. Is it Risky to Invest in Options?

    Investing with options can be a great strategy, but you need to do your research ...
  5. Computing Historical Volatility in Excel

    We examine how annualized historical volatility is computed from daily log returns, ...
  6. Understanding How Dividends Affect Option Prices

    Learn how the distribution of dividends on stocks impacts the price of call and put ...
  1. How To Create Capital Protected Investment Using ...

    Does "Capital-Protection" guarantee in an investment product sound attractive? Wait! ...
  2. Stock Options To Trade On Intraday Momentum Index

    The intraday momentum index, or the IMI, can offer a reliable way to profit on options, ...
  3. A Guide Of Option Trading Strategies For Beginners

    Options offer alternative strategies for investors to profit from trading underlying ...
  4. The Future Is Now: All About Futures ETFs

    A new security class - futures ETFs - is gaining popularity. We tell you how futures ...
  5. Consider The Season On Trading Day

    Calendar and clock bias, better known as seasonality, is a frequently misunderstood ...
  6. How To Build Valuation Models Like Black-Scholes ...

    Want to build a model like Black-Scholes? Here are the tips and guidelines for developing ...
  1. Options Pricing

    Options are valued in a variety of different ways. Learn about how options are priced ...
  2. Options Greeks

    Get to know the essential risk measures and profit/loss guideposts in options strategies. ...
  1. How does implied volatility impact the pricing of options?

    Learn about two specific volatility types associated with options and how implied volatility can impact the pricing of options.
  2. What is the relationship between implied volatility and the volatility skew?

    Learn what the relationship is between implied volatility and the volatility skew, and see how implied volatility impacts ...
  3. How is implied volatility for options impacted by a bearish market?

    Learn why implied volatility for option prices increases during bear markets, and learn about the different models for pricing ...
  4. How is the price of a derivative determined?

    Learn how different types of derivatives are priced, including how futures contracts are valued and the Black-Scholes option ...
Hot Definitions
  1. Applicable Federal Rate - AFR

    Rates published monthly by the IRS for federal income tax purposes. These rates are used to calculate assigned interest charges. ...
  2. Foreign Exchange Reserves

    Foreign exchange reserves are reserve assets held by a central bank in foreign currencies, used to back liabilities on their ...
  3. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that decreased and eventually eliminated tariffs to encourage economic activity ...
  4. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  5. Derivative

    A security with a price that is dependent upon or derived from one or more underlying assets.
  6. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
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