Gamma
1. What is Gamma? Gamma is one of the “Greeks” used in options trading, representing the rate of change in an option’s Delta for each one point change in the price…
Theta
1. What is Theta? Theta is a key concept in options trading, representing the rate of change in an option’s price for each day that passes, assuming all other factors remain…
Vega
Introduction Vega measures the rate of change in an option’s price based on movements in implied volatility. For example, if a call option has a Vega of 0.10, its price…
Strangles
Long Strangle In a long strangle, the trader buys a call and put of different strikes, the same expiration and the same underlying product. You may note the similarity to a…
Straddles
The straddle is a common options strategy and volatility trading strategy. It is used when you anticipate a significant move in the underlying futures market but are uncertain about the…