Understanding Option Pricing

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Subscribe to our channel to learn more about options trading strategies: http://bit.ly/2M3tGO3 • Visit http://www.OptionsEducation.org for more options resources, podcasts, videos, webinars and more taught by options experts. Contact our Investor Services team for help with your options questions and continued education at [email protected]. • • In every market, price is king, whether you're talking about stocks, bonds or options. But when it comes to options specifically, several unique factors go in to determining just what that price is. We will explore intrinsic and extrinsic value, time decay and theta and how implied volatility affects option prices. • Understanding Option Pricing Checkpoints: • (5:33) - Options Pricing Basics (8:10) - OIC Options Calculator - http://bit.ly/2VJLEVv (13:08) - Intrinsic Value vs. Time Value (21:19) - Time Decay/ Theta • (30:24) - Implied Volatility • (34:39) - Options Quotes - http://bit.ly/2XmYNbL • (35:25) - Buying Calls • (42:48) - Buying Puts • (47:02) - Selling Calls • (50:28) - Selling Puts • (53:58) - Cash Secure Put Example • For daily options insight and more great content, follow us on our social media channels: • Twitter: @Options_Edu • LinkedIn: / the-options-industry-council-oic- • Facebook: / optionsindustrycouncil

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