The price of any options contract (calls or puts) is measured with respect to the underlying.  Take a look at any option chain and you will notice a pattern.  As strike prices decrease, call options increase in value and put options decrease in value.  Why is this the case? To understand this...

The first and most commonly used greek term in options trading is “delta“.   Simply put, delta measures how much an options value (price) will change with a $1 move in the underlying.  When you buy a stock, you make $1 for every $1 the stock rises.  The same is not true for options as...

The option prices quoted in an option chain are AFFECTED by 5 factors and collectively these factors are called the option greeks.  They allow a trader to calculate changes in the value of an options price with respect to a change in the value of the underlying. Option Greeks delta - measures change in...

Like stocks, options are also quoted with bid and ask prices.  The “bid” price is the highest price that a buyer is willing to pay, while the “Ask” price is the lowest price a seller is willing to accept for an options contract.  Let’s take a look at an option chain, method...

What are Options?? Options are a binding contract that give investors the right or obligation to control 100 shares of an underlying (i.e. stocks, ETFs, indexes, etc) at a certain price point (strike price) within a given time frame – known as expiration date.  There are two kinds of options...