Options Delta Meaning What is delta in options? The delta of an option is part of the option Greek pricing model and prices in the magnitude of the move in the underlier that the option will capture based on the odds of the option expiring in-the-money. Option delta is represented as the velocity of a […]
Option Greeks Definitions Read More »
What is delta in options? The delta of an option is part of the option Greek pricing model and prices in the magnitude of the move in the underlier that the option will capture based on the odds of the option expiring in-the-money. Option delta is represented as the velocity of a price change in
Option Delta Explained Read More »
Option contract prices will increase as the probabilities of them expiring in-the-money are greater and will go down as the probabilities of them expiring in-the-money decreases. As options get closer to being in-the-money they capture more of their underlying assets move, as they get farther away from being in-the-money they capture less of their underlying
Understanding Vega in Options Read More »
Here is an Option Greeks cheat sheet you can use as a quick reference guide. For those not familiar with option pricing it can also be an educational guide as well. For more about option Greeks check out my article-> Option Greeks Explained. If you are interested in a deeper dive into options trading my Options 101
Option Greeks Cheat Sheet Read More »
If you are interested in trading options the before you start you need a good understanding of what determines the contract price. Understanding what factors determine an options value and how the contract price moves in correlation with the underlying stock is the first step before you start to trade them. Not understanding what can
Option Greeks Explained Read More »
If you are interested in trading options the first place you must start is having a basic understanding of what determines there price. Understanding what determines their value and how they move in step with the underlying stock is the first crucial step before you start trading them. Not understanding what can cause sudden drops and spikes in
How Stock Options are Priced Read More »
