The option Greeks (Delta, Gamma, Theta, Vega and Rho) are option trading indicators to predict price changes and manage risk in their trading strategy. Each Greek measures a different aspect of an ...
Typically, traders will use the middle price between an options bid and ask to think about a fair value. Problems occur using this mid price method: when markets are wide, when a bid and ask are ...
Options traders employ several trading strategies, but they all have the same objective: to make a profit. It’s possible to make money with options trading, and knowing how to calculate profitability ...
Embracing the usage of options trading provides a critical layer of diversification for any serious and active trader. By incorporating options, investors can achieve exposure to a broader range of ...
One of the major factors that influences the price of an option is implied volatility (IV). In simplest terms, implied volatility is the anticipated movement of an underlying equity over a certain ...