Part 2 Ride The Big Moves

Moneyness of Options

Options are classified as:

In the Money (ITM) – already profitable if exercised

At the Money (ATM) – strike close to current price

Out of the Money (OTM) – not profitable yet

Traders choose strikes based on strategy, risk appetite, and market view.

Greeks: The DNA of Options

Options behave differently based on market conditions. The Greeks measure these sensitivities:

Delta – how much the option price changes with underlying movement

Gamma – how much delta changes

Theta – time decay

Vega – sensitivity to volatility

Rho – sensitivity to interest rates

Understanding Greeks helps traders manage risk and predict option behavior.