In options trading, you may notice the use of certain greek alphabets when describing risks associated with various positions. They are known as "the greeks" and here, in this article, we shall discuss the four most commonly used ones. They are delta, gamma, theta and vega.
- Delta - Measures the exposure of option price to movement of underlying stock price
- What is delta and how to use it
- Passage of time and its effects on the delta
- Changes in volatility and its effect on the delta
- What is gamma and how to use it
- Time and its effects on the gamma
- The relationship between the volatility and the gamma
Your new trading account is immediately funded with $5,000 of virtual money which you can use to test out your trading strategies using OptionHouse's virtual trading platform without risking hard-earned money.
Once you start trading for real, your first 100 trades will be commission-free! (Make sure you click thru the link below and quote the promo code 'FREE100' during sign-up)Click here to open a trading account at OptionsHouse.com now!