, 9 tweets, 5 min read Read on Twitter
Option Greeks : Myths and Realities

Option Greeks estimate how an option's price changes with ::
1.Underlying stock price : #Delta and #Gamma
2. Interest Rates : #Rho
3. Volatility : #Vega
4. Time : #Theta
#Myth : Greeks are what make up an option's price

#Reality : Greeks explain what can happen to an option's price
#Myth : The greeks are timeless, they never change

#Reality : Greeks are ever changing, what they show now will change in the future
#Myth : Delta neutral is the goal of option trading

#Reality : Delta neutral not important for us retail traders
#Myth : You can trade options successfully without knowing greeks

#Reality : No, you can't !
#Myth : If you understand just direction, you can easily trade options

#Reality : An option's price moves in three dimensions, -Direction, volatility and time. You need a view of all three to trade options successfully
#Myth : Understanding greeks is very tough

#eReality : No it's not. The basics can be picked up by anyone with reasonable intelligence
#Myth : You don't need to know about myths, about greeks or anything else

#Reality : Yes, you do 😀

----------------------End-----------------
( adapted from info on the internet)
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Subhadip Nandy
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!