facebookHow do you value the price of an option? - Seedly

Anonymous

18 Apr 2019

General Investing

How do you value the price of an option?

Im learning options and i know the prices fall the further away they are from the current price, but how far away do you buy , how do you value the price of an option, i know i want puts cause its going to drop, but what put do i buy?

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If you want to know how to determine how options pricing works, can look at this https://www.investopedia.com/university/options...

Common model used, but for me as an options trader/investor I don't bother with it as I have my own system to determine which position to open and when to open.

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