Learn Option Basics Part 9


Greeks in Action

What you will learn

Learn about greeks in action and impact on options trading

Introduction greeks in action

Live project end software testing training included.

Greeks in real-time

Description

An option’s price can be influenced by a number of factors that can either help or hurt traders depending on the type of positions they have taken. Successful traders understand the factors that influence options pricing, which include the so-called “Greeks”—a set of risk measures so named after the Greek letters that denote them, which indicate how sensitive an option is to time-value decay, changes in implied volatility, and movements in the price of its underlying security.

These four primary Greek risk measures are known as an option’s theta, vega, delta, and gamma. Below, we examine each in greater detail.

KEY TAKEAWAYS


Subscribe to latest coupons on our Telegram channel.

  • An option’s “Greeks” describes its various risk parameters.
  • For instance, Delta is a measure of the change in an option’s price or premium resulting from a change in the underlying asset, while theta measures its price decay as time passes.
  • Gamma measures delta’s rate of change over time, as well as the rate of change in the underlying asset. Gamma helps forecast price moves in the underlying asset.
  • Vega measures the risk of changes in implied volatility or the forward-looking expected volatility of the underlying asset price.

Options can be exercised, meaning they can be converted to shares of the underlying asset at a specified price called the strike price. Every option has an end date called an expiration date, and a cost or value associated with it called the premium. The premium or price of an option is usually based on an option pricing model, like Black-Scholes, which leads to fluctuations in price. Greeks are usually viewed in conjunction with an option price model to help understand and gauge associated risks.

English
language

Content

Greeks and call buyer
What we will learn in this course
The Impact of Delta on a Call Buyer
The Impact of Time Decay on a Call Buyer
The Impact of Implied Volatility on a Call Buyer
IV rank and IV percentile Call Buyer
Greeks and call seller
Call Seller assumption
The Impact of Delta on a Call Seller
The Impact of Time Decay on a Call Seller
The Impact of Implied Volatility on a Call Seller
Greeks and Put Buyer
The Impact of Delta on a Put Buyer
The Impact of Time Decay on a Put Buyer
IV rank and IV percentile Put Buyer
The Impact of Implied Volatility on a Put Buyer
Greeks and Put Seller
The Impact of Delta on a Put Seller
The Impact of Time Decay on a Put Seller
The Impact of Implied Volatility on a Put Seller
Portfolio and Greeks
Delta Portfolio
Time Decay Portfolio
IV Portfolio
More strategies and Greeks
Buy neutral strategy
Greeks neutral
Real case scenario
Selling Put ES and Greeks
Selling Call UNG and Greeks
Selling Put on QQQ and Greeks
Unbalance iron condor
Short Strangle on Oil Future Contract
Continue to Option Basics Part 9 – Covered Call Strategy
Part 8 End

Enroll for Free

Share This Course on:
Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

We have detected that you are using extensions to block ads. Please support us by disabling these ads blocker.

Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock