Option Greeks – The Science Behind Pricing
Options pricing is influenced by multiple factors. These sensitivities are known as the Greeks:
Delta – Measures how much option price changes with stock price.
Gamma – Rate of change of Delta.
Theta – Time decay (options lose value daily).
Vega – Sensitivity to volatility.
Rho – Sensitivity to interest rates.
Example: A call option with Delta = 0.6 means for every ₹10 rise in stock, option premium increases by ₹6.
Basic Option Strategies (Beginner Level)
Buying Calls – Bullish bet.
Buying Puts – Bearish bet.
Covered Call – Hold stock + sell call for extra income.
Protective Put – Own stock + buy put for downside insurance.
Options pricing is influenced by multiple factors. These sensitivities are known as the Greeks:
Delta – Measures how much option price changes with stock price.
Gamma – Rate of change of Delta.
Theta – Time decay (options lose value daily).
Vega – Sensitivity to volatility.
Rho – Sensitivity to interest rates.
Example: A call option with Delta = 0.6 means for every ₹10 rise in stock, option premium increases by ₹6.
Basic Option Strategies (Beginner Level)
Buying Calls – Bullish bet.
Buying Puts – Bearish bet.
Covered Call – Hold stock + sell call for extra income.
Protective Put – Own stock + buy put for downside insurance.
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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.