Editor’s note: This article uses a simplified example to illustrate how a lattice model works. In the exhibits, the option term is only four years—much shorter than the 10-year life of a typical ...

On the latest Market Mashup, Patrick is back with author, analyst, and options trader extraordinaire Don Fishback to discuss his work on options valuation and probability over the years. Don shares ...

In options trading, assessing intrinsic and extrinsic value can help determine an option's price. Intrinsic value shows the profit from immediate exercise, while extrinsic value accounts for factors ...

I propose a model in which the price of an option is partly determined by macro-finance variables. In an application using an index of current business conditions, the new model outperforms existing ...

IV crush explained in simple terms. Understand how implied volatility drops affect options pricing and how to calculate the ...

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,” ...

We propose a method for selling options that defies many myths around options selling. We analyzed options prices using statistical modelling and calculus to improve the "expected value" of trading ...

Investing using options is very different from constructing a classic long-term buy-and-hold portfolio. In this segment from Motley Fool Live that first aired June 7, Motley Fool Canada analyst Jim ...

RIAs must evolve or risk incurring avoidable losses. Much like navigating the high seas, where only the most adaptable sailors can chart a course to calmer waters, RIAs now face the challenge of ...