Discover and read the best of Twitter Threads about #optiongreeks
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1. #Banknifty Strategy : Here, I have created a weekly strategy which is high on time decay and has negative vega. Given vega has been falling off significantly in the past few days. Hoping the trend to continue. Bias is positive in weekly. 
2. As the market rallied hard last week and used last hours of Thursday and whole of Friday to consolidate without giving up crucial zone of 21800 completely,there is a good likelihood of it attempting the recent highs again in the coming week.Thats an assumption I am working on.
3. Hence the weekly has a positive delta. However, if the rally has to resume, the fall in volatility/Vega may continue. Thats why it makes more sense to write more, buy less. Hence theta is positive. Gamma would need to be tackled if there is a fresh breakout of sorts.
#Straddles vs #Strangles ( Sell only )
These are the most common #Options strategies when one would start with #OptionsTrading.
Let’s understand from a broader perspective what’s the difference between these two.
These are the most common #Options strategies when one would start with #OptionsTrading.
Let’s understand from a broader perspective what’s the difference between these two.
Would not like to discuss the construction difference between them if you don’t know stop trading #options
#Straddles
You get higher premium so pnl would be higher compared to #strangles
But from where are you getting higher premiums is that your selling 0.5 #delta.
#Straddles
You get higher premium so pnl would be higher compared to #strangles
But from where are you getting higher premiums is that your selling 0.5 #delta.
So probability of one going wrong is always 50% so to simply put one side is goin to get stuck in a #straddle but then market tends to #flucuate a lot so there is always the case of #meanreversion if you have selected the #strike rightly.
#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.
#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.
Let's understand the forces that drives option in share market - Option Greeks #OptionGreeks #banknifty
Here Comes first force - Delta
I have received lot of queries on #OptionsTrading.
Specially on the trades that I take on expiry day where option prices move 10 times in last one hour. Let me tell you that this happens only 1 in 3-4 weeks.
Few pointers that I look at.
Specially on the trades that I take on expiry day where option prices move 10 times in last one hour. Let me tell you that this happens only 1 in 3-4 weeks.
Few pointers that I look at.
Expiry day trading in options few tips. I hope it will help others.
So what I look for is following 3 things.
1. Open Interest Build Up on expiry day
2. Trend of the market from start of the day
3. how to trade
3. Time when breakout or breakdown of critical levels happen
So what I look for is following 3 things.
1. Open Interest Build Up on expiry day
2. Trend of the market from start of the day
3. how to trade
3. Time when breakout or breakdown of critical levels happen
#OpenInterest Build Up
#Optionwriting has become very popular & there is heightened activity of the same on expiry day. This is clearly visible through OI buildup in specific strikes where OI goes up significantly & price goes down. Now these strikes become our boundaries
#Optionwriting has become very popular & there is heightened activity of the same on expiry day. This is clearly visible through OI buildup in specific strikes where OI goes up significantly & price goes down. Now these strikes become our boundaries
