The Greeks: Measuring Risk
Options prices are sensitive to many factors. The "Greeks" are key metrics to assess these risks.
1. Delta
Measures the change in option price with respect to the underlying asset’s price.
Call delta ranges from 0 to 1.
Put delta ranges from -1 to 0.
2. Gamma
Measures the rate of change of delta. Important for managing large price swings.
3. Theta
Measures time decay. As expiry approaches, the option loses value (especially OTM options).
4. Vega
Measures sensitivity to volatility. Higher volatility = higher premium.
5. Rho
Measures sensitivity to interest rate changes.
Options Expiry & Settlement
In Indian markets (like NSE), stock options are European-style, meaning they can only be exercised on the expiration date. Index options are cash-settled.
Options expire on the last Thursday of every month (weekly options on Thursday each week). After expiry, worthless options are removed from your account.
Options prices are sensitive to many factors. The "Greeks" are key metrics to assess these risks.
1. Delta
Measures the change in option price with respect to the underlying asset’s price.
Call delta ranges from 0 to 1.
Put delta ranges from -1 to 0.
2. Gamma
Measures the rate of change of delta. Important for managing large price swings.
3. Theta
Measures time decay. As expiry approaches, the option loses value (especially OTM options).
4. Vega
Measures sensitivity to volatility. Higher volatility = higher premium.
5. Rho
Measures sensitivity to interest rate changes.
Options Expiry & Settlement
In Indian markets (like NSE), stock options are European-style, meaning they can only be exercised on the expiration date. Index options are cash-settled.
Options expire on the last Thursday of every month (weekly options on Thursday each week). After expiry, worthless options are removed from your account.
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Details:
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Email: skytradingmod@gmail.com
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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
관련 발행물
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.