Pricing & Volatility
Without a doubt we get our "edge" as options traders by mastering options pricing and volatility. Specifically the fact that long-term implied volatility always overstates the expected market move.
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Options Parity

Options parity happens when a stock is trading at its intrinsic value with no extrinsic value (or time value). Learn about options parity and how put-call parity impacts options pricing.
Options Parity
Kirk Du Plessis
Apr 19, 2021

Options parity happens when a stock is trading at its intrinsic value with no extrinsic value (or time value) in the option. Parity will generally happen very close to expiration as theta erodes OTM option pricing or with very deep ITM options that are far from the current underlying price. Remember that options are a wasting asset and at expiration all that's left is the intrinsic value. If an option is OTM at expiration it will have no intrinsic value and will expire worthless.

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#1 Adjustment for Any Trade
Adjustments are a way to reduce risk and increase your profit. In this lesson, learn the first adjustment you should make to any options trade.

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