Part 2: the notion of implied volatility – what it is and how it is calculated. In the previous article I described three of an option’s price factors: strike price, expiry date and equity price. Implied volatility is a more complex concept to master but also essential in order to understand how an option is […]
Author: simondewerson
Equity Options 101
Until March 2018 I had very little idea about equity options. As I worked (and still work) in banking I at least possessed a fair idea about what an option is: it’s a financial instrument that gives the buyer of the option the right (i.e. the free choice, the “option”) to do something if certain […]