A simplified thread about #Gamma : Delta is change in option price with change in stock/nf/BN, but Delta doesn't remain constant, so how much delta will be changed, is measured by Gamma. Confusing?

#Gamma measures risk of movement, for e.g #tcs is trading at 2000rs,

1/n

#Gamma measures risk of movement, for e.g #tcs is trading at 2000rs,

1/n

A simplified thread about Fundamental Analysis based on old notes.

Ratio : Return, Efficiency, Growth, Cash flow, Valuation & Solvency are major factors to have ratio.

An easy matrix to compare stocks with same category. Like ranking without knowing details of balancesheet 1/n

Ratio : Return, Efficiency, Growth, Cash flow, Valuation & Solvency are major factors to have ratio.

An easy matrix to compare stocks with same category. Like ranking without knowing details of balancesheet 1/n

2/n Price to Book Value, one of the method to know if CMP is overvalued or undervalued compared to Book Value or Value if Liquidated, cases like Jet, Rcom may have BV higher > CPM but doesn't mean it's attractive price, a detailed article to read on BV m.businesstoday.in/story/stocks-tâ€¦

3/n, P/E ratio, Superstar of the Fundamental Ratio. Formula in notes, Everytime result announces, p/e changes as earning changes. As we know stock moves based on expected result, which Amy give expected p/e, so target before result are calculated reverse using new p/e on #FA

A thread about options spreads : Before I take u there, Part 1 : when you buy option, Theta (Time) is against u, Vega/Delta/Gamma are with u. Simple language, if you're right on directional, option buying gives u profit but slow on direction or no momentum, u lose time value.1/n

2/n Vega can also be against u, if u buy at high IV and then iv falls down. Read about Volatility thread for details. So buying options has low winning Probability (Delta is winning Probability, already explained in a thread). Lower the delta, Low winnin Probability, high RR.

3/n Less known Truth about Vega : Vega can only be hedged by another option.

Now another leg, if u just sell option, u have Theta on your side but Gamma and Delta on your opposite. VEGA on your side partly if shorted at high IV, because IV falls down when news/event's gone.

Now another leg, if u just sell option, u have Theta on your side but Gamma and Delta on your opposite. VEGA on your side partly if shorted at high IV, because IV falls down when news/event's gone.

A thread on SwingTrading after event: its high risk and reward when there is an event like result day. So I thought of writing a thread about it using options to hedge and how to protect risk for limited time.

2/n Let's take tomorrow's trade plan, After results on #infy or #tcs there might be gap opening. If TCS opens gap down and ur TA system gives reversal BUY on 5min chart after 9.45am, it's too risky to buy as higher time frame must be still bearish, lot is noise on TV and on chart

3/n Only experienced veteran can buy Future here in gap down opening. We can use #options2hedge & hedge has cost which we will minimize.

As explained earlier, IV plays big role on premium, so IV must be cool down if we will be buying options, TCS IV was 33 on event day

As explained earlier, IV plays big role on premium, so IV must be cool down if we will be buying options, TCS IV was 33 on event day

Volatility is calculated in a funny way â€“ it is the annualized standard deviation of the daily returns. we measure volatilities over a period of one year (252d), but consider daily moves, so SQRT(252) = 15.9, you have to divide HV or IV by 16 to get daily expected movement.

IV plays big role on premium, must not be ignored. 36% iv goes to 24% when news cool down. So your premium falls by 33% even underlying stays there. It's just news impact is absorb, so movement expected daily is back to normal. In may case, despite directionally right, u lose.

This losses are due to lost value of options if you're buyer. So stock moves 2-3% as u expected but your CE/PE stays there or goes down, so it's IV who makes buyer lose the money first and then Time Value, as u tend to stay in long, after noticing stock moved in your direction.

#Nifty low-IV strategy - I will call it "Krauncha Vyuha" Crane-shaped strategy.

lf stays between 10900-11400 then ThetaDecay max profit at 11111 for 31k.

If goes above 11400 then minimum loss

if goes below 10900 - exponential profit.

Vega High+ve, Theta & Delta slight -ve.

lf stays between 10900-11400 then ThetaDecay max profit at 11111 for 31k.

If goes above 11400 then minimum loss

if goes below 10900 - exponential profit.

Vega High+ve, Theta & Delta slight -ve.

For educational purpose here is the Greekvalue #Nifty

#pingbar reversal signal , very important to understand pin bar at correct support or trend line level.

@krishnakhanna if we can scan pin over EMA, which looks good event to track.

Delta: again so complex definition but simplest way to treat delta as Probability % of option to be IN THE Money at expiry. You can sumup the Probability of Call and Put both.

When you buy stock in cash, it's delta is 1. It's ITM already, ğŸ˜€

If you buy ATM Call, it's delta is 50%, have you noticed that? The Probability of ATM becomes ITM is 50%, underlying may go up or go down or remain there.

If stock moves 1rs, call value moves 0.50rs, delta is 50

If you buy ATM Call, it's delta is 50%, have you noticed that? The Probability of ATM becomes ITM is 50%, underlying may go up or go down or remain there.

If stock moves 1rs, call value moves 0.50rs, delta is 50

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