Invest With Cici shared · Apr 27, 2022 13:37

Review [Help Teddy and Win Rewards] #12

Thx for helping Teddy to calculate the premium of the put option with detailed explanations~

Cici has delivered 66 points to all the mooers with effective comment. Also, mooers invited others to help Teddy together has been delivered extra 10 points! If you have not received them, just let me know~

If you have any suggestions about our events, feel free to leave your comments (great suggestions might be rewarded with 66 POINTS)!

Apart from calculating the premium of the put option, mooers did an excellent job on explaining the main points about options! Cici is so proud of you guys!

Let me share some valuable comments from our mooers:

As @birdiebrog mentioned, before getting the number for the premium, one important thing we should pay attention to is defining whether the option is ATM, ITM or OTM.

For call options:
ATM: strike price = stock price
ITM: strike price < stock price
OTM: strike price > stock price

For put options:
ATM: strike price = stock price
ITM: strike price > stock price
OTM: strike price < stock price

After distinguishing the position of the option, we can calculate the time value based on the formula of Premium = Intrinsic Value + Time Value

@doctorpot1 has shown the detailed steps of the calculation. Also, @doctorpot1 is a master of moomoo app, introducing a great way to figure out the price with our moomoo function as below:

Finally, @Milk The Cow got the right answer for the price of the option with helps from other mooers. We do really hope all of you can learn more about investment through [Help Teddy and Win Reward] and win rewards at the same time!

Finding options are interesting and wanna learn more? Tap

How options are priced

Again, we have various investment courses in moomoo app, and we continuously update them.

If you wanna learn something but not included in moomoo courses yet, let Cici or @moomoo Learn know about it!

To find out more experience and advice shared by others, tap [Help Teddy and Win Rewards] Understand the Price of Options

Again, thx for ALL your sharing mooers!

Our [Help Teddy and Win Rewards] #13 is coming soon, follow me and see you guys in next [Help Teddy and Win Rewards]~

Let's make investing easier and not alone.

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more

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