Implied volatility is the option writer’s forecast of the future risk of that market. Low implied volatility indicates a small premium, while high implied volatility options carry high premiums due to the perceived risks present. The level of implied volatility in an option determines the premium...
One of the advantages of equal-weighted portfolios is that academic research shows that in the long term, they tend to outperform their market-cap-weighted peers, mainly due to positive loadings on well-known factor premiums like size and value. So, if equal weighting outperforms market-cap ...
Volatility is also used to price options contracts using models like theBlack-Scholesorbinomial treemodels.6More volatile underlying assets will translate to higher options premiums because with volatility, there is a greater probability that the options will end upin the moneyat expiration. ...
Volatility is also used to price options contracts using models like theBlack-Scholesorbinomial treemodels.6More volatile underlying assets will translate to higher options premiums because with volatility, there is a greater probability that the options will end upin the moneyat expiration. Options tr...
with a “12-month rolling dividend yield” of 7.58%. During times of high volatility, such as investors saw in 2022, call-option premiums will be significantly higher, so this type of fund can have a much higher dividend yield.That was the case when MarketWatch profiled JEPI in early 202...
Total premiums paid $732. If the stock goes significantly below $23 or above $32 I have to decide what to do with the position which there are ways to manage it. Until than I will enjoy the rest of the summer :) Some notes:
Jim Mueller:That's definitely truth. But if we have time, I'd like to address one more point on what the professor wrote. He implied volatility. He is entirely correct that when implied volatility is high, the option premiums also tend to be high. That's because the implied volatility ...
The good news is that, lately, ASE hasn’t just been treading water—it has been on a significant uptrend. For both fiscal 2024 and fiscal 2025, experts are projecting double-digit revenue growth for ASE Technology, with profits expanding even faster. ...
Return = (Profit from the option roll + difference in strike price) / (what you paid for the stock) To annualize the return rate of rolling stocks: Annualized Return = Return * (365/(number of days to expiration)) Be honest with yourself on stock target prices - Do the research and ...
Using a covered call trade strategy during a bull market will underperform stocks but they will still realize profits. Below we have compiled a list of best stocks for covered call strategy which can yield good premiums/profits during 2024: ...