Several months ago I wrote an article concerning the Greeks, which measure an option’s exposure to risk. Those of us who study options are constantly reading and hearing that delta, one of the greeks, is one of the most powerful influences over option value. Because of this and your interest in the subject, as expressed in [...]
Entries Tagged as 'greeks'
Delta and Covered Call Writing
February 6th, 2010 · 38 Comments
Tags: delta · greeks · implied volatility
The Greeks- Factors that Influence our Option Premiums plus Stocks on the Move
June 21st, 2009 · 12 Comments
There are several factors that allow us to estimate the risks associated with our option positions. Together, they fall under the heading of the “greeks” because most of them are named after Greek letters. Let’s first look at the major forces that impact a call option’s price:
An increase in volatility will increase an option premium
An increase [...]
Tags: Cashing in on Covered Calls · Stocks on the Move · The Greeks · economic news · greeks
