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17th February 2024
Greeks
Theta (decay)
The sensitivity of an option price to the variable of time. Remember that options only have a finite life (until
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17th February 2024
Vega
The sensitivity of an option price to volatility. Typically, options increase in value during periods of high volatility.
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17th February 2024
Sigma
Sigma is generally a term used to represent volatility. It is generally represented as a percentage. The term "one sigma
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17th February 2024
Rho
The sensitivity of an option price to interest rates. Typically, call options increase in value as interest rates rise and
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17th February 2024
Option
A security which gives the buyer the right, not the obligation to buy (call) or sell (put) an underlying asset
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17th February 2024
Position Delta
The sum of all positive and negative deltas within a hedged trade position.
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17th February 2024
Gamma
The speed by which Delta changes compared with the speed by which the underlying asset is moving.
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17th February 2024
Delta
The amount by which an option premium moves divided by the dollar for dollar movement in the underlying asset.
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17th February 2024
Delta Hedge
A strategy designed to protect the investor against directional price changes in the underlying asset by engineering the overall position
Marketing Wisetraders.com
17th February 2024