Quantifying factors that affect option premiums<\/h3>\n
An introduction to option greeks and how they interact to produce changes in option premiums.<\/p>\n
Read: Trading Options, Know your Greeks<\/a><\/p>\n Using NIFTY options to understand Implied Volatility.<\/p>\n Read: Forensics: NIFTY Options \u2013 Implied Volatility(IV)<\/a><\/p>\n Using NIFTY options to understand Vega.<\/p>\n Read: Forensics: NIFTY Options \u2013 Vega(\u03ba)<\/a><\/p>\n Using NIFTY options to understand Gamma.<\/p>\n Read: Forensics: NIFTY Options \u2013 Gamma(\u03b3)<\/a><\/p>\n Using NIFTY options to understand Delta.<\/p>\n Read: Forensics: NIFTY Options \u2013 Delta(\u03b4)<\/a><\/p>\n Using NIFTY options to understand Theta.<\/p>\n Read: Forensics: NIFTY Options \u2013 Theta(\u03b8) Decay<\/a><\/p>\n A kitchen-sink chart to show all that can be shown about ATM Nifty options, greeks, volatility, etc…<\/p>\n Read: Forensics: NIFTY Options<\/a><\/p>\n Suppose you are moderately bullish about a stock\/index and you feel that it has room to run but its not going to be gangbusters. What you could do is buy the call and then sell a call at a higher strike to mitigate the cost of your (moderately) bullish outlook.<\/p>\n Read: Long Call Spread<\/a><\/p>\n Monitoring liquidity risk is as important as checking your deltas and P&L and can often make or break a trade.<\/p>\n Read: Options Liquidity<\/a><\/p>\n Almost all asset pricing models are built on the assumption that asset returns are normally distributed. This allow mathematically precise models to be constructed, but often at the cost of accuracy.<\/p>\n Read: The most important assumption<\/a><\/p>\n If you are sure that the underlying stock\/index is going to move strongly before expiration, then this is the option strategy for you.<\/p>\n Read: Long Straddle<\/a><\/p>\n If you can keep your head when all about you are losing theirs… or if you think volatility is going to ebb, then this is the option strategy for you.<\/p>\n Read: Short Straddle<\/a><\/p>\n Before trading options, try and get a grasp of how the underlying volatility behaves.<\/p>\n Read: Understanding Nifty Volatility<\/a><\/p>\n Straddles can be expensive. A slightly less expensive, but more aggressive strategy is the strangle.<\/p>\n Read: Long Strangle<\/a><\/p>\n Avoiding the unlimited risk of straddles and strangles and settling for a lower max. profit.<\/p>\n Read: Butterflies<\/a><\/p>\n Less riskier than butterflies, cast a wider net.<\/p>\nImplied Volatility(IV)<\/h3>\n
Vega(\u03ba)<\/h3>\n
Gamma(\u03b3)<\/h3>\n
Delta(\u03b4)<\/h3>\n
Theta(\u03b8) Decay<\/h3>\n
Charting ATM NIFTY Options<\/h3>\n
The simplest options strategy: The Bull Call Spread<\/h3>\n
Spare a few minutes to liquidity<\/h3>\n
The normal distribution<\/h3>\n
Betting on volatility<\/h3>\n
Collecting carry<\/h3>\n
Volatility distribution<\/h3>\n
Strangle<\/h3>\n
Butterflies<\/h3>\n
Condors<\/h3>\n
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