Tag: theta

The Inner Workings Of Time Decay In Options Trading

| March 8, 2019 | 0 Comments
The Inner Workings Of Time Decay In Options Trading

After a steep decline and rapid rebound, the stock market seems to be settling in.  Following such a period of big moves and high volatility, I wouldn’t be surprised if it went nowhere for the next couple weeks, or until the next earnings period. But, as an options trader, one thing’s for certain: Time never stands […]

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Options Trading: Is This The Ideal Environment For Calendar Spreads?

| October 3, 2018 | 0 Comments
Options Trading: Is This The Ideal Environment For Calendar Spreads?

In my trading, I usually establish positions with directional bias through the purchase of puts or calls.  This can provide the most leverage and biggest bang for your buck. That is assuming the move you predicted happens in a relatively short time and in a pretty orderly fashion. But as we discussed last Monday, the market seems […]

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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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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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