The Blue Collar Investor WeBlog

Alan Ellman says “Be CEO of your own money!”

The Blue Collar Investor WeBlog Investment Strategies by Alan Ellman

Entries Tagged as 'Stocks on the Move'

The Greeks- Factors that Influence our Option Premiums plus Stocks on the Move

June 21st, 2009 · 12 Comments

There are several factors that allow us to estimate the risks associated with our option positions. Together, they fall under the heading of the “greeks” because most of them are named after Greek letters. Let’s first look at the major forces that impact a callĀ option’s price:

An increase in volatility will increase an option premium
An increase [...]

[Read more →]

Tags: Cashing in on Covered Calls · Stocks on the Move · The Greeks · economic news · greeks