Options Greeks: How Delta reacts to changes in Stock Price, IV and Time (Gamma, Vanna and Charm)

Sign up to my new course: "Advanced Options Trading in plain English" on Udemy.

Take advantage of a special introductory price and start learning advanced options trading concepts and techniques in clear and simple terms.

*********** Course Summary ***********

1. Operational considerations when trading options
Understanding the importance of an options trading plan and how options expiration impacts it. Reviewing the impact of the exercise and assignment processes and how pin risk and dividend risk can have an impact on your trading.

2. Understanding options pricing
Application of the Delta-Gamma approximation formula along with quick formulas for at-the-money straddles and 20-delta strangles. Analysis of the differences in distribution between intrinsic and extrinsic values.

3. Introduction to the Black-Scholes option pricing model
Understanding the principles behind the Black-Scholes option pricing model and how it results in at-the-money delta not being exactly 50 as it is often assumed and also how delta and the probability of expiring in-the-money are different.

4. Volatility and its impact on option pricing
Impact of volatility skew and term structure in options strategies such as ratio spreads, delta-buster and calendar spreads. Also, how volatility impacts the price of options even when directionally wrong.

5. Put-Call Parity
Introduction to put-call parity and its applications such as synthetic positions, box spreads and the impact of hard-to-borrow status on option pricing.

6. Synthetic Positions
Applying put-call parity to positions such as covered calls, condors, butterflies and vertical spreads.

7. Advanced Option Greeks
Analyzing second and third order greeks (delta, vega, theta, gamma, vanna, charm, speed, zomma, color, vomma, veta, thega) and how they react to changes in underlying price, volatility and time to expiration.

8. Options Strategies
Review of premium-selling strategies by implied volatility level and directional outlook. Also, earnings-related calculations and strategies along with a review of stop-losses for a 0-DTE strategy.

9. How to trade the VIX
Trading the VIX using VIX Futures, VIX ETFs and ETNs and VIX Options. Impact of contango and backwardation on the pricing of VIX Products

10. VIX calculation and settlement of VIX Futures and Options
Understanding what VIX represents and how it's calculated. Impact of the settlement process on VIX Futures and VIX Options

11. Adjusting and rolling options positions
Introduction to the concept of managing existing options positions by adjusting or rolling them as a response to changing market conditions

12. Options Portfolio Management
Managing an Options Portfolio and all its components to maximize profits and minimize risks

*********** Course Summary ***********

Sign up to our courses by clicking on the following links:

Options Trading in plain English for beginners

Advanced Options Trading in plain English

Managing Options Positions in plain English

[dogcard]

Love your videos!! Trust me your channel and your videos is a real Gem. Please Keep making them. Both your courses are excellent as well I'm just starting the second one. Thanks a lot!!