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Historical volatility of stocks

Factors that Influence Option Value + The Black-Scholes Model

An integral part of understanding option trading basics, is mastering the components that influence option value. Many option traders will look to make money as a result of a discrepancy between an option’s current market value and its theoretical value. In other words, is the option overpriced or undervalued? If, for example, an option is […]

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Greeks: Factors that Influence our Covered Call Premiums

We have all heard the term “the Greeks” as it applies to stock options. Most of us know that these factors somehow explain how certain parameters can impact the value of an option premium. To avoid facing some members of the BCI community claiming that “this is all Greek to me”, this article will serve as […]

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Playing the Bid-Ask Spread When Selling Covered Call Options

An integral aspect of our options trade executions is to sell at the “bid” and buy at the “ask”. Many times we can “negotiate” the bid to a higher price or the ask to a lower price. Would you like to earn $50 in 50 seconds? Why not learn how to play the bid-ask spread? […]

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