27
Aug
Just yesterday, I was having a discussion with a friend who was keen on knowing about the markets and…
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09
Mar
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Life can only be understood backwards; but it must be lived forwards.
In the process of investing, one often makes…
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06
Dec
I was reading the article Who Pays for Your Coffee? the other day, an interesting take on the concepts of…
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18
May
Systematic Transfer Plan refers to Mutual Fund investment method where an investor is able to invest lump sum amount…
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21
Jan
The Golden Rules of Investing are essentially a common sensical approach which largely comes down to the emotional aspects…
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20
Dec
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Chains of HABIT are too light to be felt …. until …… they are too heavy to be broken ~Warren…
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05
Oct
Value Investors look out for good/great companies trading at low multiples (be it earnings/book or cash flow). Investors looking…
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19
Mar
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In the process of investing, one often makes mistakes.
Here are some of the most common investing mistakes which investors…
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14
Aug
6 key principles of persuasion by Robert Cialdini
This book (Influence :The psychology of persuasion ~ Robert Cialdini) is on my…
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06
May
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Most of the investors begin investing using Mutual funds. I am surprised when many people come to me and…
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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
Time amplifies the effect of volatility changes. As a result, vega is greater for long-dated options than for short dated options
As the above graph indicates, As volatility falls, vega decreases for in-the-money and out-of-the-money options; vega is unchanged for at-the-money options
Find Basics of Options Delta Delta ; Gamma.
“The greatest ignorance is to reject something you know nothing about”…If you are invested in Markets, it makes sense to be aware of & have an idea about Options.
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