#Option #Greeks Simplified

#Options are definitely more complicated than equity or futures.

Their prices don’t just go up and down.

They also fluctuate based on things like #time, #implied #volatility and #underlying stock movements.

#Options are definitely more complicated than equity or futures.

Their prices don’t just go up and down.

They also fluctuate based on things like #time, #implied #volatility and #underlying stock movements.

#Options #Greeks Are Simply Mathematical Shortforms

Most of you would remember from school that mathematical formulas sometimes were #Greek letters like Pi and #Delta. The same is true for options.

Don’t let them overwhelm you or scare you.

Most of you would remember from school that mathematical formulas sometimes were #Greek letters like Pi and #Delta. The same is true for options.

Don’t let them overwhelm you or scare you.

They’re simply #mathematical words to explain some very basic principles.

#Greeks Describe the Behavior of #Individual #Options

Each #greek can help predict how it will behave under different circumstances and how options prices would change.

#Greeks Describe the Behavior of #Individual #Options

Each #greek can help predict how it will behave under different circumstances and how options prices would change.

#MetaphysicsOfQuality iⁿtrade:

• Fixed #RiskManagement is Percentage #StopLoss.

• Such a StopLoss is -100% of the initial MarginLevel Percentage.

• So #netting may appear at -50% of MarginLevel Percentage.

• Any #LEVERAGE just offers #DrawDown —

kind of limited LOSS.

🔻

• Fixed #RiskManagement is Percentage #StopLoss.

• Such a StopLoss is -100% of the initial MarginLevel Percentage.

• So #netting may appear at -50% of MarginLevel Percentage.

• Any #LEVERAGE just offers #DrawDown —

kind of limited LOSS.

🔻

• A #lever on #fulcrum is

better than leverage!

• My #BreadthScreener™ is

not a BLACKBOX!

• It SPOTS the FULCRUM &

NABS the SHORT LEVER:

• The #BreadthScreener™ is a #non_forecasting,

#volatility-gauging,

#trading #system

• #ConstantRisk #FixedRisk #Management SURVIVES!

🔻

better than leverage!

• My #BreadthScreener™ is

not a BLACKBOX!

• It SPOTS the FULCRUM &

NABS the SHORT LEVER:

• The #BreadthScreener™ is a #non_forecasting,

#volatility-gauging,

#trading #system

• #ConstantRisk #FixedRisk #Management SURVIVES!

🔻

• Since #practice precedes #theory,

— #RiskManagement precedes #trading setups;

• Since theory doesn't make difference between theory & practice,

— Setups' forecasting don't forecast fail;

• Since practice makes the difference,

— #FixedRisk precedes #TradingStrategy setups

🔻

— #RiskManagement precedes #trading setups;

• Since theory doesn't make difference between theory & practice,

— Setups' forecasting don't forecast fail;

• Since practice makes the difference,

— #FixedRisk precedes #TradingStrategy setups

🔻

#ITM Vs #OTM #Options Which to #BUY?

When selecting the right #option to #buy, a #trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option.

When selecting the right #option to #buy, a #trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option.

The God of #Options #Greeks is often disregarded and has no mercy, especially on #Options #expiration day.

A #Thread on #Gamma.

#OptionsGreeks

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A #Thread on #Gamma.

#OptionsGreeks

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The primary feature of #Options is their non-linear payout.

Most traders understand that #OptionsPricing is dependent on the price of the underlying, but the response is non-linear. #Gamma is the variable that describes this non-linearity.

#OptionsGreeks

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Most traders understand that #OptionsPricing is dependent on the price of the underlying, but the response is non-linear. #Gamma is the variable that describes this non-linearity.

#OptionsGreeks

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Loosely, if #Delta is the speed of the #Options position, #Gamma is the acceleration.

#OptionsGreeks

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#OptionsGreeks

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