17. Volatility & Normal Distribution
In the earlier chapter we had this discussion about the range within which Nifty is likely to trade given that we know its annualized volatility....
16. Volatility Calculation (Historical)
16.1 – Calculating Volatility on Excel In the previous chapter, we introduced the concept of standard deviation and how it can be used to evaluate...
15. Volatility Basics
15.1 – Background Having understood Delta, Gamma, and Theta, we are now at all set to explore one of the most interesting Option Greeks –...
14. Theta
14.1 – Time is money Remember the adage “Time is money”, it seems like this adage about time is highly relevant when it comes to...
13. Gamma (Part 2)
13.1 – The Curvature We now know for a fact that the Delta of an option is a variable, as it constantly changes its value...
12. Gamma (Part 1)
12.1 – The other side of the mountain How many of you remember your high school calculus? Does the word differentiation and integration ring a...
11. Delta (Part 3)
11.1 – Add up the Deltas Here is an interesting characteristic of the Delta – The Deltas can be added up! Let me explain –...
10. Delta (Part 2)
10.1 – Model Thinking The previous chapter gave you a sneak peek into the first option Greek – the Delta. Besides discussing the delta, there...
9. The Option Greeks (Delta) Part 1
9.1 – Overview Yesterday I watched the latest bollywood flick ‘Piku’. Quite nice I must say. After watching the movie I was casually pondering over...
8. Moneyness of an Option Contract
8.1 – Intrinsic Value The moneyness of an option contract is a classification method wherein each option (strike) gets classified as either – In the...