What Are Intrinsic and Extrinsic Option Values?

What Are Intrinsic and Extrinsic Option Values?

Intrinsic and extrinsic option values are two components of an option chain which can be very important to an options trader. Knowing the intrinsic and extrinsic option values can help you as an options trader choose a good option candidate with its’ corresponding...
What does the SKEW Index Mean to Options Traders?

What does the SKEW Index Mean to Options Traders?

In February, 2011, CBOE introduced the S & P 500 SKEW Index, as another means for investors to gauge market volatility and the potential risk of a “black swan” type of event. The SKEW Index is an option-based indicator that measures the perceived tail risk...
Weekly Options – Be Aware Of The Risks

Weekly Options – Be Aware Of The Risks

Options trading becomes more and more popular every year. The options become more liquid and more traders use them for hedging, speculation, income etc. Weekly options (weeklys), introduced by CBOE in October 2005, are one-week options as opposed to traditional...