Top Gun Options Market Intelligence
What Determines the Price of an Option?
When you buy or sell an option, either a put or a call, what determines the price of an option are the intrinsic and extrinsic value of that specific option contract. The intrinsic value is not the term used by long term investors for the likelihood of a stock to...
Interest Rates and Options Prices
Interest rates affect the economy and the markets. And, interest rates and options prices are also directly related. Along with volatility, time to contract expiration, underlying asset price, intrinsic value of that asset, and dividend yield, interest rates should be...
![[Tuesday Market Intel Brief] MAX Afterburner Podcast Airborne, CJCS Commits Treason, Inflation Less Nuclear](https://topgunoptions.com/wp-content/uploads/0-1427-400x250.jpg)
[Tuesday Market Intel Brief] MAX Afterburner Podcast Airborne, CJCS Commits Treason, Inflation Less Nuclear
https://youtu.be/ZAlYAgPnEJ8 Good Tuesday afternoon ladies and gentlemen and welcome to the Top Gun Options Intel Brief. My name is Mathew Buckley. My call sign is Whiz. Sorry, folks. Just have not had enough time to do these daily free market briefs, Sitreps. They...
Choosing Strike Prices in Option Trading
Two important decisions to make when trading options are what expiration date or dates to use for your option contracts and what strike price or prices to choose. When choosing strike prices in option trading the trader is typically balancing profit potential versus...
How Implied Volatility Affects Option Pricing
Implied volatility is the market forecast of likely security price movement. It is a metric that options traders and investors use to estimate future volatility using predictive factors. Options traders consider this to be a market risk proxy. It is generally...
How Dividends Affect Option Prices
Successful option trading requires that you take into account all factors including dividend payments on stocks that you are trading and how dividends affect option prices. All else remaining equal, puts options will go up prior to dividends and call options will go...