Option Greeks | Delta | Gamma | Theta | Vega
Option Greeks measure the sensitivity of an option’s price to various factors. They are essential tools for traders to manage risk and understand the potential price movement of options. Delta (Δ): Sensitivity to Stock Price Changes Delta measures the rate of change in an option’s price with respect to a $1 change in the underlying […]
Payoff profiles for options – Calls and Puts
Buying Call Options Payoff Underlying: AAPL (Apple Inc.) Type: Call Option Exercise Price (Strike Price): $150 Expiry Date: 25th April (30 days until expiration) Market Price of Call Option (Premium): $5 When you purchase this call option, you pay the market price or premium of $5 to the option seller. This call option entitles you […]
