Option Greeks: The 4 Factors to Measure Risk
The “Greeks” are crucial resources for options traders since they show how sensitive an option’s price is to different variables. Each Greek helps traders better manage risk by calculating the effect of a distinct market variable on the price of an option. Let’s examine each in turn: Delta (Δ) Definition: Delta calculates how sensitive an […]
A Newbie’s Guide to Reading an Options Chain
Components of an Options Chain Call and Put Options: There are two divisions in an options table: one for call options and the other for put options. Generally, puts are listed on the right while calls are listed on the left.Strike Price: The price at which an option may be exercised is known as the […]
Short-Term vs. Long-Term Stock Options
The duration of an option is another way to group them. Typically, options with a one-year expiration date are considered short-term. Long-term equity anticipation securities, or LEAPs, are defined as long-term options with expirations longer than a year. With the exception of their longer periods, LEAPs are exactly like standard options. Short-term and long-term options […]
