Here’s a dead-simple breakdown of 5 Option Greeks that you might’ve read but never understood.
1/ Delta:
Delta is a measure of the sensitivity of an option’s price changes relative to the changes in the underlying asset’s price. In other words, if the price of the underlying asset increases by 1 point, the price of the option will change by a delta amount.
The Call option has a positive delta, and the Put option has a negative delta.
As the options become ITM, the value of delta tends towards +1 for call and -1 for put.
Delta is an important greek to determine the hedge ratio for investors who want to hedge their portfolio.
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1/ Bullish Engulfing:
A bullish engulfing pattern is a candlestick pattern that forms when a red candle is followed the next day by a large green candle, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.
A bearish engulfing pattern is a candlestick pattern that forms when a green candle is followed the next day by a large red candle, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.
Jesse Livermore was one of the most legendary Traders of all time.
Commonly known as COTTON KING, made his 100Mn$ shorting the 1929 fall.
In just 13 years he filed 3 bankruptcies, 2 divorces & Suicide in 1940.
What went wrong ? > Here’s a breakdown of each event : 🧵
Pre summary/:
Childhood :
Jesse Livermore was born on 26th of July, 1877 in Massachusetts in a very poor family. His father was a farmer and his mother was a homemaker. Jesse was a gifted child, at the age of 3, he was able to read and write and by age 5, he was already reading newspapers.