Options are used as a form of insurance, and their prices tend to increase in periods of high market uncertainty. However other factors, such as the price of the underlying, also contribute significantly to option prices. Today we discuss the correlation between option prices and the price of the underlying on days with large market movements, and how it might differ from our intuition.

Options are used as a form of insurance, and their prices tend to increase in periods of high market uncertainty. However other factors, such as the price of the underlying, also contribute significantly to option prices. Today we discuss the correlation between option prices and the price of the underlying on days with large market movements, and how it might differ from our intuition.

Options and Underlying Price Correlation

It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hood—options probabilities, volatility, trading strategies, futures, you name it—so your trading mechanics are built to manage more winners.

Share Options and Underlying Price Correlation

Sign up to save your podcasts

Options and Underlying Price Correlation

Options and Underlying Price Correlation