What is Vega? Vega is the option Greek that explains the relationship between the price of an option and volatility changes in the underlying security. Theoretically, Vega gives the value...
What Is Theta? Theta is the Greek that explains the relationship between the price of an option and the time to expiry. The extrinsic value i.e. non-intrinsic value of an...
What Is Gamma? As Delta changes with underlying price, Gamma is used to measure the rate of change of Delta. Gamma is the second derivative of the change in option...
How much does an option’s price move as the price of the underlying asset changes? Delta can tell us. What Does Delta Measure? Delta measures how much the option price...
Would a trader wish to be stuck in a long position because there is just no buyer for it? Definitely not! And that’s why liquidity is so important. What Is...
Delta, Gamma, Theta, Vega & Rho, a.k.a the most common option Greeks, are an important tool for option traders. Option Greeks measure the different factors that affect the price of...
A stop-loss is exactly what it sounds like – it stops a trader from incurring a loss or more loss. It is one of the most important tools a trader...
Did you know how many F&O stocks are on NSE? 156* to be exact. But how are they categorized? Let’s find out. GICS or Global Industry Classification Standard is a...
A commodity is a good that is interchangeable with other goods of the same type. Commodity prices are fixed based on the supply and demand of these commodities. Typical examples...
Most of the options have a maturity of 1 month, 2 months or 3 months. But what does a trader do if he/she has a long-term view on the underlying?...
