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TFC Commodity Trading Forum

Re: how to determine price of an option

Black Scholes used mostly

stock price
strike price
wheter a call or put
days to expiration
interest rates
dividends
volatility

But it doesn't really matter for the most part as far as trading.

Just pay attention to your signals and cycles.
Know the volatility to know what to trade and how.
Remember time is the killer of option traders!
Less time and in the money is the traders friend!

I like weekly option and near month options myself.
And will almost NEVER go out over 3 months!
I like deep in the money for most trading.
But it does depend on what a how you trade!

Like any trading. Don't marry a position or market!

Just follow the crowd and cycles and trade your signals!