Adam Warner, the author of daily options report, provided a quick snapshot of the different Greeks. As I have said in the past, if you are at all interested in investing, you definitely need to Adam's blog. Options are already a significant part of the investment landscape and are only becoming bigger. Even if you have no intent to trade options today, you should at least have a rudimentary understanding as to how options work and the interplay between stocks and options.
Adam's discussion of the Greeks is as follows:
- Know Your Greeks is a discussion about vega or volatility.
- Know Your Greeks Part Deux is a discussion about delta or how much an option price moves relative to the change stock price.
- Know Your Greeks Part Tres is a discussion about gamma or how much delta moves relative to the change in stock price.
- Know Your Greeks, The End is a discussion about theta or the change in options price per day, everything else being kept equal.
Adam provided easy to understand discussions on all of the topics. His discussions are meant as an introduction. So if you are new to options (also known as derivatives), these series of articles are a helpful primer.
thanks.
Love all the pics btw.
You're welcome and thank you. :-)