Section III: Option Pricing Models & Directional Trading
Option pricing models estimate a contract’s theoretical value, while directional trading uses a bullish or bearish view on the underlying asset’s next move. The two are linked because option prices depend heavily on the same forces that drive directional bets: price, volatility, time, and rates.
Binomial Option Pricing Models
The Black and Scholes OPM
Option Greeks
Spread Strategies
Experience Nobel Prize Wining Models
Master the essentials of options trading with the industry’s most popular pricing frameworks, including Black-Scholes, binomial trees, and Monte Carlo simulation. Turn your market outlook into action with directional strategies that express bullish or bearish views through calls, puts, or vertical spreads instead of simply buying the stock.