Explore the binomial tree model's use in option pricing, its workings, and examples. Learn how this model estimates intrinsic ...

I recently discussed the ability to use implied volatility to calculate the probability of a successful outcome for any given option trade. To review briefly, the essential concepts a trader must ...

Explore the benefits of strip options: a market-neutral, bearish strategy with profit potential in both upward and downward ...

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. The plot of at-the-money Put and Call prices versus expiration dates roughly describes a horizontal parabolic ...

On the latest episode of the Schaeffer's Market Mashup podcast, Patrick is joined by author, analyst, and options trader extraordinaire Don Fishback to discuss his work on options valuation and ...

Editor’s note: This article uses a simplified example to illustrate how a lattice model works. In the exhibits, the option term is only four years—much shorter than the 10-year life of a typical ...

The great thing about options is their versatility. Traders who learn how to trade options can create strategies that meet their particular criteria for risk, reward and probability of success with a ...