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Guy Cohen

Time Decay with Options

by Guy Cohen 18. November 2007 18:05
Theta T The characteristic of option prices to change purely as a result of the passage of time is known as time decay. Theta is a measure of how time decay affects the option premium. As such, theta is nearly always negative for bought options (although it can be positive for deep in the money puts in certain circumstances). This makes sense because time decay erodes the option value as time to expiration diminishes. [More]
Guy Cohen

Volatility and Options

by Guy Cohen 18. November 2007 17:52
The seven factors that influence an option’s price
The seven factors that influence an option’s price [More]
Guy Cohen

Trading Options inside the Bid-Ask Spread

by Guy Cohen 18. November 2007 17:35
The Bid-Ask Spread is the amount by which the Ask exceeds the Bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it.
The Bid-Ask Spread is the amount by which the Ask exceeds the Bid. This is essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it. [More]