Tag: delta

Have Option Gamma Trades Taken Control Of The Market?

| July 15, 2019 | 0 Comments
Have Option Gamma Trades Taken Control Of The Market?

Back in my day as a market maker on the floor of the Chicago Board of Options Exchange (CBOE), the third Friday of the month was known as ‘gamma day.’ That was prior to 2005 when weekly options were introduced—to show my age, I was on the CBOE from 1991-2002—and ever since ‘gamma day, it has been a weekly occurrence. Actually, […]

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3 Smart Trades For A Troubled Market

3 Smart Trades For A Troubled Market

Try these options trades for high-odds profits in DIS, AMD and RUT Another trade war headline delivered another nasty market open. With volatility on the rise and overnight swoons in stock futures now the norm, the environment has turned treacherous for directional traders. If you’re seeking the best trades to weather the turmoil, I suggest […]

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The Dummies Guide To Option Greeks

The Dummies Guide To Option Greeks

There you are in a conversation with a professional trader about their strategy and suddenly the “inside baseball” terms start rolling off their tongue – Delta Hedging, Short Gamma, Theta Burn, and Vega Risk.  You smile and nod without perhaps knowing exactly what these terms mean, and just like that, what started as a good […]

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Do Buyers Of Options Benefit From High Volatility?

| April 19, 2017 | 0 Comments
Do Buyers Of Options Benefit From High Volatility?

Search “options and volatility” in Google and you’ll get a dozen websites that say the same thing: option buyers want high volatility and option sellers want low volatility. Oddly enough, this old and relied upon rule of thumb isn’t completely correct. In reality, as an option trade plays out, trend has a far more powerful […]

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Option Greeks

| April 9, 2012 | 0 Comments
Option Greeks

Option Greeks are metrics used to more precisely understand the behavior of an option’s price.  In a nutshell, they measure the sensitivity of an option’s price in relation to several different factors.  Those factors include underlying stock price, interest rate, volatility, and time decay. Traders use Option Greeks to analyze changes in the price of […]

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