Everyone has a Suitable Market condition where they will perform at their Best.
#Thread on Market Phases Based on Pure Experience over last 3 Years.
1/n
Phase 1 :
The Rally :
Market Gives One sided Uptrend and Not much Whispaws & Minor Pullback.
Easiest Phase to Make Money.
(Aug/Sep 2021, July/Aug 2022, and many Other Rallies)
2/n
Phase 2 :
The Price Correction.
- Market Gives One sided Downtrend with Minor Whispaws/Pullbacks.
(Feb-March 2020),
3/n
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.