Feb 5, 2015 · Start here if you're new to options trading. You will learn what option contracts are, why you should trade them and understand the mechanics of what makes up option prices.

It analyzes any option contract and compares it against the historical averages, while providing a graphical representation of the price movements through time - know as the Volatility Cone.

It doesn't matter how far the market falls, your losses are guaranteed to be no more than your initial investment. AND, if you're the buyer of an option you have limitless gains as the market moves in …

Nov 12, 2019 · Understanding the Put Call Parity relationship can help you connect the value between a call option, a put option and the stock. When you see how these building blocks are connected, you …

On the "basic" worksheet tab you will find a simple option calculator that generates fair values and option Greeks for a single call and put according to the underlying inputs you select.

"Is this Option Cheap or Expensive?" Understanding this basic question will help you make better decisions when it comes to your options trading. Take a look at this example; The red dot in the …

If you've never seen a payoff chart, then below we'll go through two examples of what the P&L looks like for an easy long call option (buying a call) and then a short call option (selling a call).

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Sep 28, 2017 · Adding more volatility to an option is the equivalent of adding more time; that is, it increases the value of the option. The reason is that increasing either of these elements increases …