What Is a Strike Price?

The strike price is the predetermined price where an option holder can make a transaction. It is essentially the price where the contract holder is eligible to “strike” a deal. Remember when you were younger and heard you couldn’t eat dessert until you finished dinner? Getting your dinner completed was the key to unlocking that …

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Implied Volatility Chart

An implied volatility chart is a graphical representation of the implied volatility of a stock or an option over time. These charts are handy in analyzing options pricing and past performance. For example, IV charts show how much a stock is expected to move based on the relationship between its price movement and the volatility …

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Open Interest vs. Volume

One of the most challenging tasks is analyzing market circumstances, and here is where economic indicators, metrics, and statistics come into play and simplify the work. However, market research and the right tools are the most critical aspects when assessing market circumstances and making decisions. When adequately studied, even the slightest signal may have a …

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Option Extrinsic Value

You may have beaten the marketplace by trading options with a disciplined strategy in the hopes of catching an intelligent decision upwards or downwards. Several investors have developed the competence to profit in the financial markets by selecting one or two solid equities poised to rise shortly significantly. However, if you don’t know how to …

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Sell to Open vs Sell to Close: What’s the Difference?

Options trading is becoming more common as a feasible strategy for everyday investors to benefit from as more and more knowledge becomes accessible. However, unlike many other investment tools, Options contracts are generally not commonly understood. Primarily, this is attributed to the reason that options are much more technical and complicated than conventional asset classes …

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