Intrinsic value, time value and volatility are the three main factors that influence the value of an option premium. The variations in the value of the premium can be explained with the help of some tools commonly referred to as the Greeks, Delta, Gamma, Vega and Rho.
Information herein is believed to be reliable but the editor of Investors are Idiots.com Arjun Parthasarathy does not warrant its completeness or accuracy. Opinions and estimates are subject to change without notice. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The financial markets are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved. Unauthorized copying, distribution or sale of this publication is strictly prohibited. The author of the articles may have investments in instruments that are the subject of the articles.
4th December 2013
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