Time Value (Extrinsic Value)
The price of an option less its intrinsic value. Out of the Money Options are entire made up of Extrinsic
Marketing Wisetraders.com
17th February 2024
Option Fundamentals
Marketing Wisetraders.com
17th February 2024
Theoretical Value (options)
The fair value calculation of an option using a pricing technique such as Black-Scholes options pricing formula.
Marketing Wisetraders.com
17th February 2024
Strike Price (Exercise Price)
The price at which an asset can be bought or sold by the buyer of a call or put option.
Marketing Wisetraders.com
17th February 2024
Put Option
The right, not the obligation to sell an underlying security at a fixed price before a predetermined date.
Marketing Wisetraders.com
17th February 2024
Marketing Wisetraders.com
17th February 2024
Out of the Money (OTM) Puts
OTM Puts are where the current stock price is greater than the Put Strike Price.
Marketing Wisetraders.com
17th February 2024
Out of the Money (OTM) Calls
OTM Calls are where the current stock price is less than the Call Strike Price.
Marketing Wisetraders.com
17th February 2024
Out of the Money (OTM)
Where the option has no intrinsic value and where you cannot exercise an option for a profit.
Marketing Wisetraders.com
17th February 2024
Marketing Wisetraders.com
17th February 2024