Options Basics

This is a summary of the very basic terms and concepts of options, including calls and puts, option premium, intrinsic value, time value, implied volatility, and the Greeks. You can follow the links to get a more detailed explanation with examples.

Definition and Basic Logic of Options

Trading and Exercising Options

Strike Price of an Option

Market Price and Intrinsic Value of Options

In the Money, At the Money, Out of the Money

Time Value of Options and Time Decay

Historical and Implied Volatility

Delta, Gamma, Theta, and Vega


Related pages


relative standard deviation calculatorrealised volatilityiron butterfly option strategyrelative strength index excelblack sholes equation13f-hrspectral skewnessportfolio weight calculatornegatives squaredhistorical implied volatility chartnormdist excelnormdist in excelhow to calculate cost of preferred stock in waccwhat is delta hedginginverse etnkurtosis pptcalculating historical volatilityhow do you calculate standard deviation on excelmacd calculation excelblack scholes model explainedsquaring numbers in excelfinance vxxlogarithmic rate of returnmedian advantages and disadvantagesfx implied volatilitypercent relative standard deviation calculatorsharpe ratio portfolioproshares ultra vix short-term futures etfultra short vix etfformula for calculating variance in excelannualized volatility formulasearch 13f filingsvariance excel formulaimplied volatility calculatorvxx tickerapple stock price graphwhat is the formula for variance in excelproshares ultra vix short-term futurescboe comcontango explainedskew calculationonline black scholes option calculatordescriptive stats in exceleuro stoxx 50 historical pricesstrategies of hedge fundss&p correlationstandard deviation and variance for grouped datathe black-scholes formulahow to calculate intrinsic value of a stockdefine kurtosisarithmetic formulas in excelhedging with putsmarket breadthetf xivcalculating volatility of stockmoment coefficient of kurtosisinstrict valuespx volatility indexexcel computation formulaindicative price meaningvega calculatordelta hedge calculatorexponential moving average excel formulastock price volatility formulasample covariance calculatorexp function in excelspy historical returnscalls and puts for dummieshow to calculate weighted average cost of debtpi symbol excelblack scholes options