ACFAmerican CashFlowInvestment Club

Understanding Option Pricing

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American CashFlow Academy

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Module 1 · Introduction

Welcome to Understanding Option Pricing

Video 9 minFree preview
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Why does an option cost what it costs? Learn intrinsic and extrinsic value, implied volatility, time decay and the Greeks — delta, gamma, theta and vega — and how they change as price and time move.

What you will be able to do

  • Separate intrinsic and extrinsic value
  • Interpret implied volatility and IV rank
  • Use delta, gamma, theta and vega
  • Anticipate how positions change over time
Intrinsic value, time value, implied volatility and the Greeks.