The Bjerksund-Stensland model is a key method for pricing American options. It helps investors determine optimal times for exercising options with dividends considered.

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 ...

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 strike price is the price at which a put or call option can be exercised. It's also known as the exercise price. Picking the strike price is one of three key decisions an investor must make when ...

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.

With upcoming earnings reports, options pricing reveals heightened expectations for post-earnings moves. Options on the Mag 7 make up about 25% of the single stock option volume daily. There are 8 ...

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Derivatives are instruments that obtain value based on the price of an underlying asset, such as a stock, bond, ETF, or commodity. Stock option contracts are securities that give traders the choice of ...

Short dated index options have been all the rage for the past couple of years. The Nasdaq-100 (NDX) option market has been a big beneficiary of widespread use of short-dated options. For example, ...