Option Value
The option value is the total premium of a contract, determined by market forces and theoretical pricing. It consists of intrinsic and extrinsic value.
Traders constantly analyze this value to determine if an option is a good buy or sell. Understanding the components of option value is the foundational skill for all professional derivatives traders.
Glossary
Long Term Value Creation
Principle ⎊ Long term value creation is a fundamental investment principle focused on generating sustainable economic benefit and appreciation over an extended period.
Fundamental Value Investing
Principle ⎊ Fundamental value investing centers on identifying assets trading below their intrinsic worth, based on a thorough analysis of their underlying economic characteristics and future earnings potential.