How Option Prices Move – The Greeks
Delta: Sensitivity to price change in the underlying
Gamma: Rate of change of Delta
Theta: Time decay – loss in value as expiry nears
Vega: Sensitivity to Implied Volatility (IV)
Rho: Interest rate sensitivity
Understanding Greeks helps manage risk, adjust positions, and time trades better.
4. Why Traders Choose Options
Leverage: Control large positions with limited capital
Risk Control: Limited loss in buying options
Flexibility: Multiple strategies (bullish, bearish, neutral)
Hedging: Protect existing stock portfolios
Income Generation: Through writing options like covered calls
Delta: Sensitivity to price change in the underlying
Gamma: Rate of change of Delta
Theta: Time decay – loss in value as expiry nears
Vega: Sensitivity to Implied Volatility (IV)
Rho: Interest rate sensitivity
Understanding Greeks helps manage risk, adjust positions, and time trades better.
4. Why Traders Choose Options
Leverage: Control large positions with limited capital
Risk Control: Limited loss in buying options
Flexibility: Multiple strategies (bullish, bearish, neutral)
Hedging: Protect existing stock portfolios
Income Generation: Through writing options like covered calls
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.