As you may well be aware, it's very common for option players to close out their trades without ever touching the underlying equity. In other words, they're not looking to acquire or sell the ...

Implied volatility, time decay, and delta all play crucial roles in option prices As you may well be aware, it's very common for option players to close out their trades without ever touching the ...

Nine major sentiment indicators have been developed to implement Warren Buffet's statement about buying during "fear" and selling when there's "greed." Two of them are based on option activity. Our ...

Wholesalers create differential option pricing by not only systematically varying execution methods, but also the pricing within each method, according to a new research paper. The paper titled “Some ...

The option Greeks are key metrics that you need to know if you’re trading options. The Greeks help traders understand how options prices will move in response to changes in major factors such as the ...

Does the illiquidity of stocks impact prices and returns of options written on these stocks? Research in the past has been cloudy on this point. But in a new paper, Stock Illiquidity, Option Prices, ...

A common question for investors new to options is, how do people come up with those prices? For example, the Nasdaq-100 closed at 8580.62 on Wednesday, December 18. Anyone watching the 8500 strike put ...

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Elvin Mirzayev, CFA, holds the CFO position at Norm OJSC. He has been a contributor to Investopedia since 2014. Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed ...