A few months ago we published one of our most highly read articles titled, Are You Leaving Money on the Table? It compared people who just hang onto stocks to landlords who never rent apartments. It made many people who had at least 100 shares of a stock wonder how much they could make by “renting” that stock.
Monthly Archives: April 2006
So, how is the estimated “value” of a stock option determined by an option trader? An automobile’s estimated value can be found by looking it up on the Internet or in the “blue book”. A house’s value can be estimated by comparing houses sold in the surrounding neighborhood. But how can an option trader estimate the value of a stock option?