options | Enrichwise

June 22, 2012 Investment Planning, options admin

Understanding Options Vega : What is it

Options Vega is the change in the value of an option for a 1-percentage point increase in implied volatility. Vega of a long option position (both calls and puts) is always positive. At-the-money options have the greatest vega An option goes in-the-money or out-of-the-money, the smaller is vega. As time passes, option vega decreases […]

June 15, 2012 options admin

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, […]

May 30, 2012 Derivatives, options, Tutorials admin

Options Delta : The Basics

Options Delta is the ratio of the change in the price of the stock option to the change in the price of the underlying stock Delta = instantaneous change in value of asset with respect to an underlying risk factor. Option’s delta changes continuously as underlying risk factor changes Here are some basic characteristics of Options Delta […]

August 29, 2010 Stocks, Mutual Funds, Etf's etc, Tutorials admin

What and How of Nifty Index!!!

. One of my friend recently just wanted to get an idea about Nifty and How it is calculated. I am presenting some basic facts about Nifty here…. Background of Nifty S&P CNX Nifty is a well diversified 50 stock index accounting for 21 sectors of the economy. It is used for a variety of […]

August 2, 2010 Derivatives, Investment Planning, Market Update, options, Stocks, Mutual Funds, Etf's etc, Tutorials admin

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 […]

July 29, 2010 Derivatives, Investment Planning, options, Stocks, Mutual Funds, Etf's etc, Tutorials admin

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 […]

March 28, 2010 Stocks, Mutual Funds, Etf's etc admin

Understand charges other than Brokerage when Buying and Selling Shares

Most of you must have bought and sold shares through intermediaries. Most of you are aware of the brokerage costs. However there are various other charges levied by Exchange. These charges are on top of brokerage costs and they kick in whenever you buy or sell shares or trade in Futures and options. . It […]

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