27
Feb
How to Achieve Goals? The SMART Way…..
SMART ways to realize goals … (applicable to Life / Health / Financial…
read more
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…
read more
09
Sep
There is a report in Business Standard which mentions many Indian Companies amongst the world’s largest value creators in…
read more
29
Jun
I came across this good article at http://www.threetypes.com/philosophy/investor-types.shtml and wanted to share. It essentially discusses the various types of Investors…
read more
06
Dec
I was reading the article Who Pays for Your Coffee? the other day, an interesting take on the concepts of…
read more
29
Jul
“The greatest ignorance is to reject something you know nothing about”
If you are invested in Equity Markets or Mutual…
read more
18
Feb
Everyone has the brainpower to make money in stocks. Not everyone has the stomach. ~ Peter Lynch.
If you are susceptible…
read more
01
Nov
Well the above mentioned information is pretty basic math. And most of well educated adults would have solved these…
read more
14
Aug
6 key principles of persuasion by Robert Cialdini
This book (Influence :The psychology of persuasion ~ Robert Cialdini) is on my…
read more
20
Oct
.
Analyzing and trying to get insights from Financial Statement is one of the most interesting aspect. A Financial Statement can be…
read more
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)
[…] Gamma of deep in-the-money and out-of-the-money options decreases Basics of Options Delta ; Vega “The greatest ignorance is to reject something you know nothing about”…If you are invested […]
[…] get more information on Options Greeks , read Options Basics of Vega , […]