Option price refers to the option premium or the transaction price between buyers and sellers, but any investor who enters the market can buy and sell the right futures of assets at the agreed price at any time. As we all know, the change of option price is influenced by many factors. Generally speaking, although the interest rate has an impact on the option price, it has little impact.

What are the influencing factors of option price?

The influencing factors of option price are stock price, exercise price, expiration date, stock price volatility, and related factors such as the return of the holding period of the subject matter and the price of the contract. Moreover, there is a certain target income in the market, and generally its income will also affect the option price.

Among them, the underlying asset price rises, and the call option is more profitable. The stock market price changes in the same direction as the call option value, and the put option value changes in the opposite direction. When the volatility rises, the underlying assets are more likely to rise and fall, and the same call option and put option are more profitable, and the option price will also rise. The time before the expiration date, generally speaking, the validity of the option is directly proportional to the time value.

Because trading option contracts will involve futures, and when the option price is finally determined to a certain extent, the probability of being determined by the futures price is great. In addition, for American options, the longer the term, the greater its value; For European options, longer time may not necessarily increase the value of options.