Option Greeks are referring to the various factors that affect option prices. They are called Greeks based off of the Greek names associated with the factors that they stand for. When using any option calculator, the calculator is calculating a theoretical value of an option based off of the various factors that affect the option price. The calculators are using a Nobel Prize winning formula to come up with the theoretical value. The Black-Scholes Model is the basis for these option calculators. Some calculators may tweak the formula slightly to […]

A dividend is a way for investors to receive some regular income from their investment in a company. When an investor buys shares of stock, they are now a part owner of the company. When a company generates a profit, the company board of directors may decide to share the profits with investors by paying a dividend. Dividends are typically paid out on a quarterly basis. The company is under no obligation to pay a dividend. It is their choice and the amount paid out is their choice. To simplify, […]