Put-call parity is a fundamental concept in options trading that describes the relationship between the price of a call option and the price of a put option on the same underlying asset with the same strike price and expiration date. Put-call parity is based on the principle of arbitrage, which...

The Black-Scholes model is a mathematical formula used to estimate the price of a financial instrument, such as a stock option, based on various factors that affect its value. It was developed in 1973 by Fischer Black and Myron Scholes and has since become a widely used tool in finance.

At its...

The put-call ratio is a popular market sentiment indicator used by traders to gauge the overall sentiment of the market. It compares the number of traded put options to the number of traded call options on a particular underlying asset. Put options give the holder the right to sell the underlying...

Options trading can be a lucrative way to invest and make profits in the stock market. However, to be successful, traders must have a deep understanding of the various aspects of options trading, including the concept of option expiration. In this guide, we'll take a closer look at what option...

When it comes to trading options, one of the most important concepts to understand is the option strike price. In this guide, we'll take a closer look at what the option strike price is, how it works, and why it's important for traders.

What is an Option Strike Price?

The option strike price is...