Greek Option Trader

[timepass]

Hello Trader ,
Morning Trade with profit 11793 with the help of greeks . there are so many ways to make money by using option greeks ,

just for encouragement of trader , they can also make money if understand of greeks correctly .

Please explain the Greeks that led to you taking this trade. Just imagine that the readers are dummies where the Greeks are concerned.

Simply posting a trade is likely to be perceived wrongly.

 

[poniol]

Maestro Trader,
I am unable to measure your knowledge about greeks reading the two liner posts in the thread. Can you enlighten us with some serious in-depth truth of greeks in Indian options market?
Just if you tell us that you trade with 'delta, gamma, theta, vega and ...' does not help. Please make some valid points...
I request you to show your expertise on the questions below:

1. How much % theta will decrease PER HOUR before TWO days of expiry?
2. Do you have any VEGA neutral strategy?
3. If IV changes by 2%, then how much DELTA % will change? At least how much stock price will change?
4. How much a strangle will loose value per hour in expiry week given all other things are remains constant?

Don't take it otherways. I just need your views. If you ask the above questions to me, then I will not able to answer. So, I like to hear from you.

 

[muthutrader]

i am starting this thread for discussion about the option greeks . like delta , gamma , theta , vega , rho and etc..

Hi Maestro Trader continue the post

thanks
muthu

 

[jhaveri_n]

There are quite a few, for paid version, the best is VolHedge by FinIdeas, there are few free ones like option oracle

 

[rvarada]

Options are the equivalent of a swiss army knife in dealing with the markets. Long, Short, Hedge - anything you want - can be done with options - with the right strategy.

Unless you are a very experienced trader who understands the nuances of trading options - it is best you spend some time understanding how it works in detail - before jumping in.

Start with stocks in the cash market, move to futures and then trade options - once you understand the benefits the options have to offer. Knowing Greeks alone is not a panacea.

There are a lot of books and lots of articles on how easy it is to make money from options. But always consider that option writers are people with a lot to lose if they are wrong - and most option writers are knowledgeable professionals with enough incentive to keep their money.

When buying naked options - please remember that there is a higher chance you are going to lose the premium paid.

When writing options - if you have done your homework - there is a better chance you will make money - but always make sure you are covered.


R

 

[tradertrader]

Hi everyone. Though I am happy with international Indices and making good money.I am trying to keep my some part of portfolio with nifty options trading. And recently started mcx with my Indian clients. But last month after 15 I made a strategy with mix of my knowledge with technical analysis and option greeks.Though no expertise in greeks and also in option trading but never lost in option when earlier I was doing Indian market. But very less involved one or two trade per month. Now coming to strategy. I decided to write 8600 call 1 call in the money and 8800 call out of money after 15 of this month. One with delta above 50 and one with delta below 50. Profit in both but out of money call I remember expire 0.05. I remember I deiced to take entry near Rs 16 or Rs 18 exactly not remember. And 8600 call near rs 110 or Rs 105 any one rate. Though whatever expire Rs 2.95. Means Profit in In money is nearly Rs 7653, rs 1196. Cool. But margin involved I heard rs 25000 as I have not started trading in it. Just to boost my confidence. If I would buy 8600 put then upto expiry it is wait. So I will try to check this 2-3 months more how option writing works for me. And going to buy one paid software if seems interesting if in charts I get Greeks. Because I am using amibroker.If any coder is there here who can make program on option greeks then will rock. But anyways I will try to post my own strategy to learn and rectify if get time. As doing well in international market in gold and dax so cant leave main stream.

 

[akza]

Options are the equivalent of a swiss army knife in dealing with the markets. Long, Short, Hedge - anything you want - can be done with options - with the right strategy.

Unless you are a very experienced trader who understands the nuances of trading options - it is best you spend some time understanding how it works in detail - before jumping in.
R

thats great,