TIME DECAY OPTIONS AND THEIR MEANING

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In this article we are going to look at time decay options and their meaning. Investopedia defines time decay as the ratio of the change in an option’s price to the decrease in time to expiration. Since options are wasting assets their value declines over time. Options contracts give the buyer the right but not […]

EXTRINSIC VALUE

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Extrinsic value is one of the moving parts in options trading. Extrinsic value is, in essence, value from the outside. Options give you the right but not the obligation to buy or sell a stock at a specified price. One options contract controls 100 shares of a stock. In essence, trading options is cheaper than […]

HOW STOCK OPTIONS WORK

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Do you know how stock options work? Options have a reputation for being difficult and hard to understand. With a little patience and willingness to study you can learn how to trade options. You can make money in any market. An options contract gives you the right but not the obligation to buy or sell […]