There are two types of directional option contracts: calls and puts. Call options are contracts that move higher in price when the underlying stock moves higher. Put options are contracts…

What is IV in Options? In Black–Scholes option pricing model, the implied volatility or IV of an option contract is the cost embedded in the option of the volatility of…

How to calculate an option price A Black-Scholes Calculator can be used to figure the price (fair market value) of a put or call option contract based on the Black-Scholes…

Call options are in the money when the underlying stock that it is written on has a price higher than a the call option strike price. A call option can…

The delta of a stock is always 1.00 because delta is the variance of movement of a stock versus an option contract. The delta of an option is the magnitude…

OTM is short for out of the money in options trading. This refers to the moneyness of an option contract, the relationship of the current price of the underlying asset…

What is delta in options? The delta of an option is part of the option Greek pricing model and prices in the magnitude of the move in the underlier that…

A “squeeze” is price action that is so strong in one direction that it forces traders and investors to change their market positions based on moves going too far against…

Maximum pain for an options chain can show the option trader the expiration date price that will cause the option buyers to lose the most money. The max pain level…

Implied volatility or IV crush are descriptions for when an options vega premium dropped dramatically out of its pricing. This usually happens after a major event has passed for the…