Stock Options Explained

The Plain Bagel · Aug 19, 2026 · 14m

Correction: At 4:20, the graph in the top left-hand corner is slightly off; for total return, the curve should not intercept at (30,0), but rather should be shifted slightly to the left so that the bend in the line occurs at (30,-2). Sorry for the blunder.Option Pricing Factors:- Underlying stock price (higher = higher call premium, lower put premium)- Underlying stock price volatility [expected] (higher = higher option premium)- Underlying stock dividends (higher = lower call premium, higher put premium)- Option's strike price (higher = lower call premium, higher put premium)- Time until…