How Is Profit Calculated In An Options Trade? The real difference between selling to close call options (or put options) before expiration and during expiration at market close is that when call options are sold before expiration, they have extrinsic value remaining while those same call options sold at market close on expiration day would have no extrinsic value left. As … [Read more...]
What is Options Strike Price and Expiration Date?
Options - Strike Price and Expiration Date Definition: Options trading uses several related phrases that are unique to options markets. Some commonly used, but often misunderstood options phrases are : Strike Price The strike price (or exercise price) of an options contract is the price that the underlying security will be bought or sold at if the option is exercised (i.e. … [Read more...]
What are Time Premium in Futures Options?
Time Premium in Futures Options Definition: Time premium describes the part of an option price that is above the intrinsic value of the option. Typically, the more time remaining on an option, the higher its time premium. The reasoning behind this is that the more time you have on an option, the better chance you have for the underlying futures contract to move in your … [Read more...]