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    July 27, 2020

    Option Delta and Theta

    Option Delta measures the degree to which an option is exposed to shifts in the price of the underlying asset (i.e., a stock) or commodity (i.e., a futures contract). Values range from 1.0 to –1.0 (or 100 to –100, depending on the convention employed). Option Theta refers to the rate of decline in the value of an option over time. […]

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    October 21, 2019

    No! I Said Vega, Not Vegas!

    It seems like earnings season is year-round now and that is great news for traders like us. This is when the opportunities arise. But, in order to take advantage of these opportunities, we must understand the risks involved. In this video, I explain the interplay between the critical measures that determine the price of options […]

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    August 13, 2019

    How Does Option Theta Decay Work?

    Options traders often refer to the delta, gamma, vega, rho and theta of their option positions. Collectively, these terms are known as the Greeks, and they provide a way to measure the sensitivity of an option’s price to quantifiable factors. Today, I want to focus on theta.  Theta is the time-decay component of the option pricing model. Click the […]

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    April 4, 2019

    No! I Said Vega, Not Vegas!

    It seems like earnings season is year-round now and that is great news for traders like us. This is when the opportunities arise. But, in order to take advantage of these opportunities, we must understand the risks involved. In this video, I explain the interplay between the critical measures that determine the price of options […]

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    September 12, 2018

    No! I Said Vega, Not Vegas!

    It seems like earnings season is year-round now and that is great news for traders like us. This is when the opportunities arise. But, in order to take advantage of these opportunities, we must understand the risks involved. In this video, I explain the interplay between the critical measures that determine the price of options […]

    Read Article