12
Oct
Your parents are not your emergency funds.
Your children are not your retirement funds.
BUILD YOUR OWN WEALTH.
Business, Investing…
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30
May
Options Delta is the ratio of the change in the price of the stock option to the change in the…
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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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13
Jul
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“The investor’s chief problem – and even his worst enemy – is likely to be himself.” ~ Benjamin Graham
Sensex…
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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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09
Sep
There is a report in Business Standard which mentions many Indian Companies amongst the world’s largest value creators in…
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02
Aug
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Options, by definition, are a wasting asset. The time decay, declining volatility etc. eat away into the premiums of…
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05
Jun
Relative Valuation is Valuing an asset by comparing with prices of similar assets in market. In relative valuation the value…
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08
Jul
LNT Stock is a favourite of Investor community and is also one of the top holdings in most of…
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12
Oct
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Investors generally focus on the returns of any asset. They largely ignore the risk factors and most importantly are…
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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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