I recently discussed the ability to use implied volatility to calculate the probability of a successful outcome for any given option trade. To review briefly, the essential concepts a trader must ...

Learn how option premiums are determined by factors like stock price, time to expiration, and volatility. Master the basics ...

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. The plot of at-the-money Put and Call prices versus expiration dates roughly describes a horizontal parabolic ...

On the latest episode of the Schaeffer's Market Mashup podcast, Patrick is joined by author, analyst, and options trader extraordinaire Don Fishback to discuss his work on options valuation and ...

Delta is a measure related to options that traders can use to predict option price movements based on the change in the underlying asset. It can also be used to assess the probability that a given ...

Editor’s note: This article uses a simplified example to illustrate how a lattice model works. In the exhibits, the option term is only four years—much shorter than the 10-year life of a typical ...

On the latest Market Mashup, Patrick is back with author, analyst, and options trader extraordinaire Don Fishback to discuss his work on options valuation and probability over the years. Don shares ...

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 ...

While the remarkable rise of gold and silver this year has dramatically elevated the underlying mining complex, the market is a cruelly chaotic and non-linear environment. As such, a steep correction ...