Introduction to Options Greeks (Delta, Gamma, Theta, Vega) with Brent Kochuba | SpotGamma

SpotGamma shares options and stock market insights and an Introduction to The Options Greeks.

Introduction to The Greeks: options pricing models and inputs, defining Delta, Gamma, Theta and Vega, the relationship between Delta and Gamma, volatility over time, future and applied volatility.

This video is PART 3 in an educational series that covers stocks, options, Greeks and how the SpotGamma methodology uses millions of data points to present actionable options metrics to our subscribers.
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0:00 Introduction
1:08 Options Pricing: Key Inputs and Model
2:24 The Greeks: Basic Definitions and Importance
3:23 Options Pricing: Example
4:00 Delta: Defined by Dollars
4:39 Delta: Application
5:58 Gamma: Defined
7:16 Gamma: Gamma Applied
8:07 Gamma: Relationship between Delta and Gamma
10:34 Theta: Defined
11:30 Theta: TSLA Example – Impact of Theta on the Other Greeks
13:57 Vega: Defined
14:50 Vega: Volatility over Time
16:32 Vega: Future Volatility and What to Expect
17:46 Vega: Implied Volatility
18:38 Summary
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*Note: This presentation is intended for general information and entertainment purposes only. No mention of company names, trading strategies or illustrative examples constitute investment advice. SpotGamma advises you to seek investment advice from a licensed professional. ###

Futures and forex trading contains substantial risk and is not for every investor. An investor could
potentially lose all or more than the initial investment. Risk capital is money that can be lost without
jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only
those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of
future results.

Hypothetical performance results have many inherent limitations, some of which are described below.
No representation is being made that any account will or is likely to achieve profits or losses similar to
those shown; in fact, there are frequently sharp differences between hypothetical performance results
and the actual results subsequently achieved by any particular trading program. One of the limitations of
hypothetical performance results is that they are generally prepared with the benefit of hindsight. In
addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can
completely account for the impact of financial risk of actual trading. for example, the ability to withstand
losses or to adhere to a particular trading program in spite of trading losses are material points which
can also adversely affect actual trading results. There are numerous other factors related to the markets
in general or to the implementation of any specific trading program which cannot be fully accounted for
in the preparation of hypothetical performance results and all which can adversely affect trading results.

[kyler]

Hey Brent! Subscriber to your awesome service. Glad to see more content coming out! thank you !!

[somejohndoe]

A stock trader may have the direction right and yet feels like he parked his money because price is going up at the pace of a snail... this is when the rate of change would come in, the famous second derivative, that would be gamma in the context of options if I got that right. What would be the timeframe SpotGamma covers for its subscribers: something like intraday, daily and monthly or something more relevant to options per se like the expiry date ?

[wassollderscheiss]

This is slightly interesting towards understanding how options prices come to be. But I don't see how this has value for making money in trading. It doesn't tell you which options to buy nor when to buy them nor when to sell them. You can still win or lose as much as without knowing the greeks. Or do you?

[runninglate]

I love your tool, but looking at these videos with 1/3 of the screen taken up by you reading a script is annoying as hellp! I have the highest resolution of the video, and still can't really see whats in the slides. So please skip the head-shot screen and learn your material before making videos.