F & O
Bullish -> buy a call or sell a put option. Bearish -> buying a put or selling a call option.
In the Money Call Option (Nifty 11450 CE), At the Money Call Option (Nifty 11500 CE), or Out of Money Call Option.
If an option’s strike price is below its current market value, it will be ITM; if it is above its current market value, it will be OTM.
-> The higher the volatility, the more expensive an option will be because there is a greater chance that its price can move in either direction before expiration.
Greeks: There are five main “greeks” or risk measures used to assess options trading strategies: delta, gamma, theta, vega and Rho.
Delta measures how much a portfolio will change in value if its underlying asset moves by one point; gamma measures how sensitive delta is to changes in the underlying asset’s price; theta tells you how much time value an option loses in a given period; and vega tells you how sensitive an option’s price is to changes in volatility.
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