Option pricing is driven by various sensitivities. One of these sensitivities is called Gamma. Gamma measures the rate of change in an option’s Delta score based on a one-point move in the underlying ...
In options trading, using the Greeks helps you decide the options to trade and when to trade them. Greeks are metrics you use to measure factors that may affect the price of an options contract.
Delta is the easiest to understand of the option Greeks Delta is the second Greek letter used in options trading. Delta can easily be quantified as the change in option price relative to the ...
Options traders employ several trading strategies, but they all have the same objective: to make a profit. It’s possible to make money with options trading, and knowing how to calculate profitability ...
Have you found strategies that make use of the decay of an option's theta that are attractive but you can't stand the associated risk? At the same time, conservative strategies such as covered-call ...