The Greeks: The Math Behind Options
Advanced traders use Greeks to understand risks.
Delta → Sensitivity of option price to stock price movement.
Gamma → Rate of change of Delta.
Theta → Time decay (how much option loses daily).
Vega → Sensitivity to volatility.
Rho → Sensitivity to interest rates.
Example:
A Call with Delta = 0.6 → If stock rises ₹10, option rises ₹6.
Theta = –5 → Option loses ₹5 daily as time passes.
Options vs Futures
Both are derivatives, but with a key difference:
Futures → Obligation to buy/sell at a price.
Options → Right, not obligation.
Example:
Futures are like booking a hotel room—you must pay whether you stay or not.
Options are like paying for a movie ticket—if you don’t watch, you lose only ticket price.
Advanced traders use Greeks to understand risks.
Delta → Sensitivity of option price to stock price movement.
Gamma → Rate of change of Delta.
Theta → Time decay (how much option loses daily).
Vega → Sensitivity to volatility.
Rho → Sensitivity to interest rates.
Example:
A Call with Delta = 0.6 → If stock rises ₹10, option rises ₹6.
Theta = –5 → Option loses ₹5 daily as time passes.
Options vs Futures
Both are derivatives, but with a key difference:
Futures → Obligation to buy/sell at a price.
Options → Right, not obligation.
Example:
Futures are like booking a hotel room—you must pay whether you stay or not.
Options are like paying for a movie ticket—if you don’t watch, you lose only ticket price.
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Details:
Contact : +91 7678446896
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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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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
Publikasi terkait
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.