A Thread On basics Of Options📩

Covering :
📌Options Greeks
📌Types of Options
📌Options Pricing

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PE : Put Option
Buying when View is Bearish
Selling when View is Bullish/Sideways
CE : Call Option
Buying when View is Bullish
Selling when View is Bearish/Sideways
Time is Friend while selling Options
Momentum in right direction is Friend while buying Options
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Options Greeks Simplified
A. DELTA
1. Delta measures how much an option's price can be expected to move for every 1 Rs change in the price of the underlying security or index .
If Delta Is 0.5 then if Stock Moves 1 Rs Option Will move 0.5 Rs Nearer the Option More the delta
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B. GAMMA
1. Gamma is the rate of change for an option's delta.
2. Gamma is at its highest when an option nearest and is at its lowest when it is further away from strike
3. If gamma Increases the price of option will change very fast as it boosts delta .
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C. THETA

1. Options don't Move linearly
2. The term theta refers to the rate of decline in the value of an option due to the passage of time.
3. Theta is generally expressed as a negative number and can be thought of as the amount by which an option's Value will reduce.
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