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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Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
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
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.