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...
7. Summarizing Call & Put Options
7.1 – Remember these graphs Over the last few chapters, we have looked at two basic option type’s, i.e. the ‘Call Option’ and the ‘Put...
6. The Put Option selling
6.1 – Building the case Previously we understood that, an option seller and the buyer are like two sides of the same coin. They have...
5. The Put Option Buying
5.1 – Getting the orientation right I hope by now you are through with the practicalities of a Call option from both the buyers and...