fin_options_teach: Teaching function for options

In umx: Structural Equation Modeling and Twin Modeling in R

Teaching function for options

Description

fin_options_teach is a teaching function for understanding options (intrinsic/extrinsic value, annualized rent, leverage, and time decay).

Usage

fin_options_teach(
  premium = 134,
  strike = 200,
  stock = 304,
  delta = 0.85,
  years = 1.8,
  type = c("call", "put")
)

Arguments

premium	Cost to buy the option contract per share.
strike	The strike price of the option.
stock	The current stock price.
delta	The delta of the option (default = 0.85). Used to calculate effective leverage (Omega).
years	How far in time the option ends (e.g. 1.8 years for a LEAP).
type	Whether it is a "call" or "put" option.

Value

A list containing intrinsic value, extrinsic value, break-even price, annualized rent percent, effective leverage (Omega), and daily theta.

See Also

• fin_value_interest(), fin_tax_NI(), fin_value_percent()

Other financial functions: fin_options_Greeks(), fin_options_LeapSimulate(), fin_options_plotGreeks(), fin_stock_CAGR(), fin_stock_justifiedPE(), fin_stock_target(), fin_stock_ticker(), fin_stock_valuation(), fin_tax_FIF(), fin_tax_NI(), fin_value_CAGR(), fin_value_CarryCost(), fin_value_NPV(), fin_value_interest(), fin_value_percent()

Examples

# Call Option (In-The-Money LEAP)
fin_options_teach(premium = 134, strike = 200, stock = 304, delta = 0.85, years = 1.8)

# Put Option (Out-Of-The-Money)
fin_options_teach(premium = 10, strike = 280, stock = 304, delta = -0.30, years = 0.5, type = "put")

umx documentation built on Oct. 11, 2026, 5:07 p.m.