Tag Archives: options

Understanding Options Gamma ~ What is it

Options Gamma is the Change in an option’s delta for a one-point change in the price of the underlying. It indicates the sensitivity of the Options delta with respect to the underlying. This is important to know because the delta indicates how much/many contracts are long/short based on underlying.   The Gamma , on the other hand, indicates, […]

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Selling Options : Sometimes it can be made to good use.

. Options, by definition, are a wasting asset. The time decay, declining volatility etc. eat away into the premiums of the options. Many option buyers learn this fact the hard way by watching their option contracts expire worthless many times. The majority of options expire worthless (estimates are somewhere > 80%). Given that the majority […]

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Buying Options : What Investors should know

“The greatest ignorance is to reject something you know nothing about” If you are invested in Equity Markets or Mutual Funds, it is wise to be AWARE of the derivative product called ‘Options’. Options have seen increase in popularity over the past few years. Television shows like CNBC, NDTV Profit, ET Now etc devote a […]

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