Articles in “Options Trading” category
7 articles.
- Vega (options)
Vega is the option Greek that measures how much premium changes for a one-point move in implied volatility, largest for at-the-money and longer-dated options, …
- Theta decay
Theta is the option Greek that measures how much premium an option loses per calendar day from time passing alone, accelerating near expiry, which is why option …
- Strike selection on the option chain
Strike selection on the Zerodha option chain means choosing a strike by delta, open-interest and volume liquidity, risk-reward, and the in-the-money, …
- Moneyness: in-the-money, at-the-money, out-of-the-money
Moneyness classifies an option as in-the-money, at-the-money or out-of-the-money by where the underlying sits relative to the strike, which sets the split of …
- Gamma (options)
Gamma is the second-order option Greek that measures how fast delta changes when the underlying moves, peaking at-the-money and near expiry, and it is the risk …
- Delta (options)
Delta is the rate of change of an option's premium per Re 1 move in the underlying, ranging 0 to 1 for calls and 0 to -1 for puts, and it doubles as the …
- How to use Sensibull's options strategy builder
Step-by-step guide to constructing multi-leg options strategies on Sensibull, reading payoff diagrams, analysing Greeks, and placing the strategy through a …