From the category archives:

Options Trading

Options: How to calculate the Price.

06/05/2010

The price of an option.
After the Options general introduction in the first post, we have seen how call options and put options work. Now, in order to get the whole picture, its the moment to understand a bit better how to determine their price.
I’m telling you in advance: if you are looking for an endless sequence of [...]

Tagged as: financial options, greeks, price, trading

{ 0 comments }

Put Options.

16/04/2010

What Put options are.
After having introduced the general concept of financial options and having seen deeper how Call options work  in a trading framework, now we can take a look at the so called Put options. As usual, we will start with the classical definition and then we will go through a couple of examples to [...]

Tagged as: expiration date, pay off, premium, put options, strike price

{ 0 comments }

Call options.

16/04/2010

What Call options are.
In our general introduction we have seen that options, when used with speculative purposes, are completely comparable to bets on an uncertain future event, while the key difference from normal securities is that their value depends from another financial instrument.
In other words, when you buy for example a share you are betting [...]

Tagged as: call options, expiring date, pay off, premium, strike price

{ 0 comments }

Financial options: Put and Call

16/04/2010

Trading with options.
If you’re thinking about trading with options and you don’t know where to start from or simply you would like to understand better what they are and how they work in a speculative context, this small guide is exactly what suits you.
If vice versa you need to create some structured operation on the [...]

Tagged as: call, derivatives, Options, pay off, put, underlying

{ 0 comments }