In options trading, assessing intrinsic and extrinsic value can help determine an option's price. Intrinsic value shows the profit from immediate exercise, while extrinsic value accounts for factors ...

Time decay refers to the rate at which time reduces the value of an option. First, it's essential to understand that time decay is exponential and accelerates as expiration draws closer. The rate of ...

In-the-money, at-the-money, and out-of-the-money are commonly used terms that refer to an option's moneyness, an insight into the intrinsic value of these derivatives contracts. This article covers ...

Discover how Vega affects options pricing by measuring sensitivity to volatility changes. Learn its impact on trading strategies with clear examples and key takeaways.

President Donald Trump's auto and retaliatory tariffs on key U.S. trading partners are contributing to market volatility. Trump also recently noted he will impose 25% tariffs on imports from countries ...