Greeks
Greeks assist trades to estimate their risk when trading options. Understanding the Greeks gives traders an idea of the expected behaviour of an option. For example, – How will the value of the option change as the stock price changes? (Delta) – What is the probability of the option expiring in-the-money/out-of-the-money? (Delta) – What effect…
Options
Options are often thrown into the too-hard basket by the uninitiated. However, with a little patience, you can nut out the basics pretty quickly. An option is a financial contract between two parties, the buyer and the seller. The buyer is referred to as the taker, owner or holder of the option, and the seller…
