Options traders employ several trading strategies, but they all have the same objective: to make a profit. It’s possible to make money with options trading, and knowing how to calculate profitability ...

Many options traders lose money not because they’re “bad at trading,” but because they lack a structured step-by-step process ...

Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...

Option pricing is driven by various sensitivities. One of these sensitivities is called Gamma. Gamma measures the rate of change in an option’s Delta score based on a one-point move in the underlying ...

Capital One calculated the value of the options using the commonly accepted Black-Sholes option-pricing model. The problem, according to a Capital One spokeswoman, was that the third party that did ...

Wall Street invented stock call options to give investors a powerful risk-hedging technique. Like a sorcerer’s crystal ball, options provide visibility into the future economic effect of a pending ...

If you're interested in options trading, one of the first things to learn is the difference between call and put options. You'll see these terms used all the time, so understanding them is a must.

Option margin is the cash or securities an investor must deposit in their account as collateral before writing—or selling—options. Margin requirements are established by the Federal Reserve Board in ...