Discover and read the best of Twitter Threads about #underlying
Most recents (3)
#Straddles vs #Strangles ( Sell only )
These are the most common #Options strategies when one would start with #OptionsTrading.
Let’s understand from a broader perspective what’s the difference between these two.
These are the most common #Options strategies when one would start with #OptionsTrading.
Let’s understand from a broader perspective what’s the difference between these two.
Would not like to discuss the construction difference between them if you don’t know stop trading #options
#Straddles
You get higher premium so pnl would be higher compared to #strangles
But from where are you getting higher premiums is that your selling 0.5 #delta.
#Straddles
You get higher premium so pnl would be higher compared to #strangles
But from where are you getting higher premiums is that your selling 0.5 #delta.
So probability of one going wrong is always 50% so to simply put one side is goin to get stuck in a #straddle but then market tends to #flucuate a lot so there is always the case of #meanreversion if you have selected the #strike rightly.
#Option #Greeks Simplified
#Options are definitely more complicated than equity or futures.
Their prices don’t just go up and down.
They also fluctuate based on things like #time, #implied #volatility and #underlying stock movements.
#Options are definitely more complicated than equity or futures.
Their prices don’t just go up and down.
They also fluctuate based on things like #time, #implied #volatility and #underlying stock movements.
#Options #Greeks Are Simply Mathematical Shortforms
Most of you would remember from school that mathematical formulas sometimes were #Greek letters like Pi and #Delta. The same is true for options.
Don’t let them overwhelm you or scare you.
Most of you would remember from school that mathematical formulas sometimes were #Greek letters like Pi and #Delta. The same is true for options.
Don’t let them overwhelm you or scare you.
They’re simply #mathematical words to explain some very basic principles.
#Greeks Describe the Behavior of #Individual #Options
Each #greek can help predict how it will behave under different circumstances and how options prices would change.
#Greeks Describe the Behavior of #Individual #Options
Each #greek can help predict how it will behave under different circumstances and how options prices would change.
#ITM Vs #OTM #Options Which to #BUY?
When selecting the right #option to #buy, a #trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option.
When selecting the right #option to #buy, a #trader has several choices to make. One is whether to purchase an in-the-money (ITM) or out-of-the-money (OTM) option.
