What they are and why they’re important while playing options 🧵:
1. Delta : The underlying estimated move of how much an options contract will move based on every $1 Move up or down. For example, the option is at $2 and the delta is .50. If the stock goes up $1 then the option will go to 2.50.
2. Gamma : The deltas expected rate of change. For example if the delta is .40 and the gamma is .1, then every dollar the stock goes up .1 will be added to the delta.
3. Theta : Calculates time delay, if the theta is -.05 and the option is $1.50 then everyday it will lose .05 in value.
4. Vega : Implied volatility, it calculates how much the premium will change with each 1% move up/down in implied volatility.
5. Rho : How much an options premium will move if interest rates change. Less important than the other Greeks.
Here’s an awesome video that can help you better understand option Greeks.
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This thread will change your trading, let's get into it 🧵
1. My background
I have been trading for 5 years and profitable for almost 3 now. My edge has been simplifying the markets and I trade the same strategy every single day. This strategy is simple yet effective! Let's get into it :)
2. The Trading Tools I use
- Timeframe: I trade on the 5 minute time frame with premarket and extended data on
- Indicators: VWAP💛 and 9 EMA💙
- Levels: Premarket Highs/Lows (PMH/L), Prev Day Highs/lows (PDH/L), Psychological Levels, and other Key Daily Levels.
How to make $1,000 a day trading stocks like $TSLA and $AAPL
Yes this works on a small account 🧵
1. My background
I have been trading for 5 years and profitable for almost 3 now. My edge has been simplifying the markets and I trade the same strategy every single day. This strategy is simple yet effective! Let's get into it :)
2. The Trading Tools I use
- Timeframe: I trade on the 5 minute time frame with premarket and extended data on
- Indicators: VWAP💛 and 9 EMA💙
- Levels: Premarket Highs/Lows (PMH/L), Prev Day Highs/lows (PDH/L), Psychological Levels, and other Key Daily Levels.
How to start making $10,000 per month trading stocks like $TSLA $META $AMD $AAPL
Yes this works on a small account and is a simple strategy🧵
1/ My Background
At 17 Years Old I have had a lot of success in the market because I simplify everything. My edge is the stocks I trade and the criteria under I trade them.
It is simple and it works. Let's get into it 👇
2/ The Indicators
I use VWAP and the 9 EMA
- Stock is over VWAP then you never buy puts
- Stock under VWAP then you never buy Calls
- 9 EMA Helps you find out when a stock is too extended