In options trading, the extrinsic value of an option represents the portion of the option's price that's based on factors other than the immediate value of exercising it. Also known as “time value,” ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Gordon Scott has been an active investor and technical analyst or ...

Option pricing is calculated using the Black-Scholes model, which takes four influential factors into account: the price of an underlying stock (assuming constant drift and volatility), an option’s ...

A put option is a financial contract that provides an investor the right (but not obligation) to sell a stock at a designated price prior to an expiration date. Learn more about put options and how ...

Options can be used to express specific trading views, but before diving into options trading, you must understand how an option premium works — a vital component that can make or break your trading ...