A Simple Way to Price Options

Although I typically warn against “trying this yourself” when I put out option trades, there are some simple tricks that anyone can learn that can mitigate or prevent costly errors. In this lesson, we paused to look at the put-and-call grid in conjunction with a stock trade under consideration. How much should one pay for a certain option with the underlying stock at a given price? There are easier ways to answer this question than you might have imagined.