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,” ...

Learn what an option premium is, how it's priced, and why it matters in trading. Explore the factors influencing option value with clear examples.

After breaching $190 early this month, Nvidia’s stock price has settled back to around $181 amidst profit-taking and a ...

Learn how "sell to close" closes an options trade, its workings, and examples of profitable and loss scenarios. Empower your ...

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 ...