Explore Your Options by Tom Gentile
I have been reluctant to get into options,
because I donít understand how
underlying stock price affects premium
price. I need to get some historical data
so I can see the relationships, and I can
get hold of the Black-Scholes› algorithm.
I have a stock feed that gives me OHLC
and volume, and I am looking for
something that is free.
This is totally understandable ó most
people fear what they do not know,
whether itís heights or race cars, or in
this case, options trading. It can be rather
intimidating, not only for the newcomer,
but also for the trader who has
experimented with options and realizes,
the way you have, that more than just
price determines an optionís value.
Options premiums are determined by
several different factors. These are:...continuded