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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15
Jun
Options Gamma is the Change in an option’s delta for a one-point change in the price of the underlying. It indicates…
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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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30
Oct
..Returns from various asset classes for the period 1979-2012
Investment
Returns in %(average annual)
Rs 10,000 invested in…
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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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29
Jul
“The greatest ignorance is to reject something you know nothing about”
If you are invested in Equity Markets or Mutual…
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26
May
Here are 5 valuable tips for investing from Warren Buffett -The Master of Value Investing. 1. “Look at stocks as…
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19
May
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SIP or Systematic Investment Planning is a concept. It means that you periodically invest your money. It inculcates discipline,…
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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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16
Dec
Most investors keep looking for the magic investing mantra which can keep compounding returns. Many burn their fingers by…
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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.
Comments (2)
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