Why Some Options Cost So Much More
Two nearly identical options can carry wildly different prices. Implied volatility is why: the market's priced-in expected move, mapped across six names.
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Two nearly identical options can carry wildly different prices. Implied volatility is why: the market's priced-in expected move, mapped across six names.
A call option is the right to buy 100 shares at a set strike before expiry. Follow one real SPY call through its whole life to watch leverage and decay work.