Option Greeks Explained - COMPLETE BEGINNERS GUIDE (Part 4) 

Gytty

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@@skyviewtrading I piggy back on this. Im in one of the worlds leading trading groups and our educators can't touch you. This is exceptional work man. It's helped me so much.

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Agreed!! Im going to go with these lads

Thanks for the kind words! We do disagree with your last statement on charts a bit though. As neutral option premium sellers we can argue we don't even need to look at a chart to open and close our trades. Everything we need to make decisions can be found from the option chain! We like to say we are trading the probabilities and statistics from an option chain, rather than the opinions and emotions of a stock chart.

@@skyviewtrading yes absolutely! I was taught to trade raw with no indicators. I just look for levels of interest and imbalances. I also traded the FX markets and that’s where I realized indicators and news don’t matter…at least for me and the way I trade. I realized the news always fits the chart. Even the options orders fit the chart too if you understand what I’m saying. A lot of people don’t lol. Good luck trading I hope you make a killing bro 🤝🤙💪🏼🙏

How is your option journey going?

@@ClipTok69 yea I also wanna know

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Much appreciated! And yes, it's high level stuff so it's not easy to keep up with!

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Always buy shares not options. There is no spread for retail to make money any more You used to be a fine ass bomb intelligent woman 👠 Now your just another grifter Dollar sign AMPE Ampio pharma Remember the number one thing affected by interest rates are short seller margin Don't listen to wall st fairy tales Your here to tax them increase there cost of doing business not be fleeced. Markets are expanding not contracting Low floats are salvation. Study ODum the only on to really ever do it. Otherwise your gonna be learning worthless T.A or stratagems that requires a 100 thousand dollar account All markets are indexed since Jack Bogle. They have to chase the flow of funds. Some times it's great to be a guppy Remember all comment sections are now heavily curated wall st. Bets is not organic Probably martin Martin shkreli brainchild if not Anton shkreli type

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More to come!

@@skyviewtrading love your videos, I remember watching them when covid started and knew nothing now look at me go, selling covered calls against my shares and selling puts here and there all properly calculated risks.

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Part 5 out now on our channel!

@@skyviewtrading it took u a year?

​@zopie plays he replied to the comment and he made a part 5...what did you do? FFS🤣

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We have a video in the works on this topic! In the meantime, checkout our video from today on Part 5!

1$

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Part 5 out now!

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Thanks for the kind words! Theta Decay works for you when you are an option seller. Selling options on entry is what gives you positive theta decay, which benefits from the passage of time. One of our favorite option strategies is the Short Strangle for example, which we have a video on in our channel. Hopefully that makes sense!

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Just came out today! Check it out!

Hey, thanks for the kind words and for watching! As for your question, the terms "point" and "dollar" are the same in this case. You will hear people use them interchangeably when chatting about the option market. Hopefully that makes sense!

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We have an iron condor video out! Just search our channel for "Iron Condor" and you should see it!

Hello! 1 point would be 1 dollar

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It would change by $2 as it is reflective of the number of shares you are long or short of the underlying market

Coming soon! Working on a few other projects right now 😎

Part 5 out now!

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Check out our Iron Condor and vertical spread tutorial videos! I'd start there!

Part 5 out now! Make sure to subscribe and turn on notifications so you get them when we release new videos!

Same here. Everything was so clear until he went to "Position". However, he did not define "Position".

"The Only Way is Up" by Martin Garrix & Tiesto

Hello! Option Greeks are for example, Delta, Gamma, Theta, And Vega. Both puts and call prices are dictated by the option greeks. Hopefully that makes sense!

Hey, thanks for the kind words! You can check out our premium service using the link below! go.skyviewtrading.com/iv-league-training-page-dt?el=whats_next_discord

You as well my friend!

They sure can! We focus on what exactly to look for in our membership courses!

Just posted a new one today!

Hello! Yes I think the question makes sense. Keep in mind there are many moving parts that are changing with every second the market is moving, but we can generalize what is going on. We start at a certain delta and gamma number. With every 1 point rise in the stock the delta number will change, and the gamma number is telling you the rate at which delta would change. Once the stock is 1 point higher the options will show different delta and gamma numbers and the process restarts. However, in reality the process is continually running with every second the market is moving and changing delta/gamma amongst other greeks. While these things can be fun to "geek out" on a bit try not to overthink it too much! When we are actually trading, we pay little attention to diving into the greeks like this on every trade. The option greeks just need to be understood from a broad picture view, so don't let them stress you out too much! Keep on moving forward and learning more!

When you buy an option (long put and call), time is against you - if you short an option (put and call), time is working in your favor!

Hello, and thanks for the kind words! Nope, your explanation is a bit backwards there. Vega is the Greek that measures an option's sensitivity to implied volatility. It is the change in the option's price for a one-point change in implied volatility. Similar to how delta is the change of an options price for a one-point move in the stock's price. Hopefully that helps!

Delta is how much an options price will change if the stock goes up 1 point... Gamma is how much the DELTA will change if the stock goes up 1 point...

Hello! None -- they move as the price of the stock and volatility of the stock moves. The most important being delta, gamma, theta, and vega. Or in "English" we could say direction, directional sensitivity, time, and volatility respectively!

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Hello! The example showed buying 100 shares of stock and also buying 1 put option. The put option can be thought of as a "hedge." When you buy a put you are betting the price of the stock will go down. Your risk is limited to what you pay for the put. In the example we purchased the put for $500. We assumed that expired worthless and we lost the $500. However, we made $700 on the +100 shares of stock we owned. That's a net profit of $200. Hopefully that helps!

Good question! We assumed we sold the Iron Condor on entry. Time Decay is working for you as time passes on when SELLING options and option spreads on entry. If we were buyers, time decay would work against us.

Hello! You are correct that losing $8.98 on an option trade would be an $898 loss per contract traded. At that point we were talking about what we lost on the option trade, rather than what that translated to in dollars lost in the account. Hopefully that makes sense!

Hello! The delta number is given to us from our trading platform. It's the sum/difference of all the deltas of the short strikes and long strikes. For example, if the short put spread of the Iron Condor generated +20 deltas and the short call spread of the Iron Condor generated -29 deltas, the net delta number would be -9 deltas. In the example of the video we had -8.98 deltas with 10 contracts. We noted with 100 contracts we'd have a delta of -89.80. Hopefully that helps!

Hello! That is natural. It is high level finance, so it's natural to be overwhelmed in the beginning. It will become easier as you stick with it. We also have more in-depth and hands-on training on our website for members!

DM ⤴️ got something profitable to share with you .......

$1.00. Like AAPL going from $102 per share to $103 per share.

Hello! No they are not, every trading platform a brokerage has will offer them.