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2. Butterfly (options) - Wikipedia

   en.wikipedia.org/wiki/Butterfly_(options)

   In finance, a butterfly (or simply fly) is a limited risk, non-directional options strategy that is designed to have a high probability of earning a limited profit when the future volatility of the underlying asset is expected to be lower (when long the butterfly) or less lower (when short the butterfly) than that asset's current implied ...

3. Iron butterfly (options strategy) - Wikipedia

   en.wikipedia.org/wiki/Iron_butterfly_(options...

   The trader will then receive the net credit of entering the trade when the options all expire worthless. [2] A short iron butterfly option strategy consists of the following options: Long one out-of-the-money put: strike price of X − a; Short one at-the-money put: strike price of X; Short one at-the-money call: strike price of X

4. Options strategy - Wikipedia

   en.wikipedia.org/wiki/Options_strategy

   The trader may also forecast how high the stock price may go and the time frame in which the rally may occur in order to select the optimum trading strategy for buying a bullish option. The most bullish of options trading strategies, used by most options traders, is simply buying a call option. The market is always moving.

5. Strangle (options) - Wikipedia

   en.wikipedia.org/wiki/Strangle_(options)

   If the options are purchased, the position is known as a long strangle, while if the options are sold, it is known as a short strangle. A strangle is similar to a straddle position; the difference is that in a straddle, the two options have the same strike price. Given the same underlying security, strangle positions can be constructed with a ...

6. Black–Scholes model - Wikipedia

   en.wikipedia.org/wiki/Black–Scholes_model

   A naive, and slightly incorrect, interpretation of these terms is that (+) is the probability of the option expiring in the money (+), multiplied by the value of the underlying at expiry F, while () is the probability of the option expiring in the money (), multiplied by the value of the cash at expiry K.

7. Binomial options pricing model - Wikipedia

   en.wikipedia.org/wiki/Binomial_options_pricing_model

   In finance, the binomial options pricing model (BOPM) provides a generalizable numerical method for the valuation of options.Essentially, the model uses a "discrete-time" (lattice based) model of the varying price over time of the underlying financial instrument, addressing cases where the closed-form Black–Scholes formula is wanting.