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Last Updated: May 6, 2008 - 6:47:21 AM |
Stock Option Pricing
Betting on Implied Volatility With Stock Options
Serious traders usually never buy options on low-priced stocks because the added leverage usually isn't worth the headache of managing an option position.
May 20, 2007 - 11:09:22 AM
Stock Option Pricing
Trading a Sector Option
Simply stated, the
multiplier is the unit of trading for a sector option. A multiplier of
100 means that for every point a sector option is in-the-money, there
is an incremental $100 of intrinsic value in the option.
Mar 6, 2007 - 5:54:00 PM
Stock Option Pricing
Creating An Option Watch List
I often get asked stock and option questions when someone finds out I follow the market. One of the most common question is "What's a hot stock right now?". Most of the time I mention three or four companies and give a quick summary of why I am following them and before you know it, they ask "How do you know this stuff?". The way I get my trading ideas is by creating a stock/ option watch list.
Feb 26, 2007 - 7:25:00 PM
Stock Option Pricing
Option Pricing Models
These models are mathematical formulas used in determining theoretical values for option contracts. Professional option traders commonly use these models to make bid and ask prices on a timely basis during the trading, to keep the prices of calls and puts in proper numerical relationship, and for monitoring and adjusting their risk. Some individual investors find these models useful when considering a price to buy or sell an option contract.
Jan 28, 2007 - 8:39:00 PM
Stock Option Pricing
Two Main Components of an Option Premium
The premium of an option has two main components: intrinsic value and time value.
Jan 28, 2007 - 8:13:00 PM
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