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Option pricing isn’t magic — but it is more complex than pricing shares.
At its core, an option’s premium is driven by supply and demand. What buyers are willing to pay, and what sellers are willing to accept. That demand is shaped by expectations: where the share price might go, how long there is until expiry, and how risky the move could be.
To use options effectively, traders need to understand what actually moves premiums — and why.
3.1 The Mai...

My portfolio is off to a galloping start in 2026, and I wanted to share my most satisfying trades and my outlook for the year ahead.
​📈 My Star Trade: Micron (MU)
​If there’s one trade that defines my strategy, it’s Micron Technology (MU).
​Performance: A massive +379.26% gain! 🚀
​The Journey: I’ve been holding this since the average cost was $80.16, and seeing it hit $384.21 is incredibly rewarding. It’s been the engine room of my AI-themed pl...

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The traders’ task is essentially to reduce. To take all of the moving parts, the three-dimensional, real-world considerations, and reduce them all to a single answer. Is this stock or ETF going up or down?
Ultimately, it’s the same for investors. We understand the imperfect view of the future we have standing in the present, and expect that not all of our choices will be successful. But the aim is to invest in assets that increase in value. Ideally...

In 2025, Robinhood (HOOD) was a textbook bull run: it rallied from an intrayear low of $29 to a peak of $153, up more than 5x. On top of that, the crypto market was red-hot—Bitcoin broke above $120,000—which gave many people a kind of “crypto conviction,” and that conviction spilled over into Robinhood as well.
But after the New Year, as Bitcoin sold off sharply for multiple sessions in a row, HOOD also suff...

Standard option contracts and market structure
Equity options are standardised contracts, with each option typically representing 100 shares of the underlying stock. When you buy or sell a single option contract, you are taking on rights or obligations related to those 100 shares at a predetermined strike price. This standardisation is a cornerstone of the options market, supporting liquidity, transparent pricing, ...