Understanding Option Premiums
The premium (price of the option) is determined by:
🧮 Intrinsic Value + Time Value
Intrinsic Value: The actual amount by which an option is in the money.
Time Value: Additional value based on time until expiry and volatility.
📈 Factors Affecting Premiums (Option Pricing):
Stock Price
Strike Price
Time to Expiry
Volatility (Implied Volatility)
Interest Rates
Dividends
This pricing is calculated by complex models like Black-Scholes.
Options Greeks: Measuring Risk
"Greeks" help traders understand the sensitivity of an option’s price to various factors:
Greek Measures...
Delta Sensitivity to price change of the underlying
Gamma Change in delta for each ₹1 move
Theta Time decay—loss in value per day
Vega Sensitivity to volatility
Rho Sensitivity to interest rate changes
The premium (price of the option) is determined by:
🧮 Intrinsic Value + Time Value
Intrinsic Value: The actual amount by which an option is in the money.
Time Value: Additional value based on time until expiry and volatility.
📈 Factors Affecting Premiums (Option Pricing):
Stock Price
Strike Price
Time to Expiry
Volatility (Implied Volatility)
Interest Rates
Dividends
This pricing is calculated by complex models like Black-Scholes.
Options Greeks: Measuring Risk
"Greeks" help traders understand the sensitivity of an option’s price to various factors:
Greek Measures...
Delta Sensitivity to price change of the underlying
Gamma Change in delta for each ₹1 move
Theta Time decay—loss in value per day
Vega Sensitivity to volatility
Rho Sensitivity to interest rate changes
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Details:
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
相關出版品
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。