Key Participants in the Options Market
The options market has a mix of participants:
Hedgers: Protect themselves from risks (institutions, exporters, investors).
Speculators: Try to profit from price moves (retail & professional traders).
Arbitrageurs: Exploit price inefficiencies between cash and derivatives.
Institutions & Banks: Use options for structured products and risk management.
How Options are Priced
Options are more complex than stocks because they have two value components:
Intrinsic Value = Difference between spot price and strike price (if profitable).
Time Value = Extra premium traders pay for the possibility of future moves.
The pricing is influenced by The Greeks:
Delta: Sensitivity of option price to underlying asset moves.
Theta: Time decay (options lose value as expiry nears).
Vega: Impact of volatility on option price.
Gamma: Rate of change of delta.
Understanding Greeks is essential for advanced option strategies.
The options market has a mix of participants:
Hedgers: Protect themselves from risks (institutions, exporters, investors).
Speculators: Try to profit from price moves (retail & professional traders).
Arbitrageurs: Exploit price inefficiencies between cash and derivatives.
Institutions & Banks: Use options for structured products and risk management.
How Options are Priced
Options are more complex than stocks because they have two value components:
Intrinsic Value = Difference between spot price and strike price (if profitable).
Time Value = Extra premium traders pay for the possibility of future moves.
The pricing is influenced by The Greeks:
Delta: Sensitivity of option price to underlying asset moves.
Theta: Time decay (options lose value as expiry nears).
Vega: Impact of volatility on option price.
Gamma: Rate of change of delta.
Understanding Greeks is essential for advanced option strategies.
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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
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이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.