Option Pricing & Volatility
Where premiums come from, and why implied volatility is the number that really moves them.
Lessons
- What Drives an Option’s PriceFive inputs decide every premium. Change one and the price moves — predictably, once you see it.
- Black-Scholes, Without the Scary MathThe intuition behind the famous formula — what it is really estimating and what it assumes.
- Implied VolatilityThe market’s forecast of future movement, baked into the price. The single most useful options number.
- IV Rank & PercentileIs volatility high or low right now? Context that decides whether you buy or sell premium.
- The Volatility Smile & SkewWhy far-out strikes carry richer volatility, and what the skew reveals about fear.
- Open Interest & Put-Call RatioReading positioning from how many contracts are open and the balance of puts to calls.