How Options are Priced
Options are more complex than stocks because they have two value components:
Intrinsic Value = Difference between spot price and strike price (if profitable).
Time Value = Extra premium traders pay for the possibility of future moves.
The pricing is influenced by The Greeks:
Delta: Sensitivity of option price to underlying asset moves.
Theta: Time decay (options lose value as expiry nears).
Vega: Impact of volatility on option price.
Gamma: Rate of change of delta.
Understanding Greeks is essential for advanced option strategies.
Types of Options
Options exist across asset classes:
Equity Options: Stocks like Reliance, TCS, Infosys.
Index Options: Nifty, Bank Nifty, Sensex.
Currency Options: USD/INR, EUR/INR.
Commodity Options: Gold, Crude oil, Agricultural products.
Options are more complex than stocks because they have two value components:
Intrinsic Value = Difference between spot price and strike price (if profitable).
Time Value = Extra premium traders pay for the possibility of future moves.
The pricing is influenced by The Greeks:
Delta: Sensitivity of option price to underlying asset moves.
Theta: Time decay (options lose value as expiry nears).
Vega: Impact of volatility on option price.
Gamma: Rate of change of delta.
Understanding Greeks is essential for advanced option strategies.
Types of Options
Options exist across asset classes:
Equity Options: Stocks like Reliance, TCS, Infosys.
Index Options: Nifty, Bank Nifty, Sensex.
Currency Options: USD/INR, EUR/INR.
Commodity Options: Gold, Crude oil, Agricultural products.
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.
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.