Preview Mode Links will not work in preview mode

Broken Pie Chart


Jun 27, 2021

Often, we get questions on why one company’s options are priced so differently than another. So how options prices differ based on implied volatility? What makes up intrinsic value vs extrinsic value in options premium? Compare a high volatility company to a lower volatility company in the options market. How to calculate expected single standard deviation expected move based on IV Implied Volatility

 

 

Implied Volatility

Volatility

Intrinsic Value

Extrinsic Value

Time value in premium

LEAP Options

How Days to Expiration Inform Option Prices

Gamestop Options vs 3M Options

 

 

Mentioned in this Episode:

 

Podcast High Probability Options Strategies https://open.spotify.com/episode/5r05EHn8TBaJFCwGT7J8WN

 

Derek Moore book Broken Pie Chart https://amzn.to/2RUP4sy