May 28, 2016 | Investment Basics, Option Trading Basics, Options Calculations
Option Greeks are mathematical means of measuring the risk of stock options. One of the least discussed of these factors is Gamma. In this article, we will explore the significance of this Greek and relate it to covered call writing. Gamma defined and...
Dec 26, 2015 | Investment Basics, Option Trading Basics, Options Calculations, Stock Option Strategies
Covered call writers and put-sellers know that option value is impacted by the change in stock price by the amount of its Delta. Delta, one of the option Greeks, is defined as the amount an option value will change for every $1.00 change in share value. If a call...
Sep 26, 2015 | Investment Basics, Option Trading Basics, Options Calculations
The Greeks are a mathematical means of estimating the risk of stock options. Delta measures the change in the option price due to a change in the stock price, Gamma measures the change in the option delta due to a change in the stock price, Theta measures the change...
Sep 8, 2012 | Covered Call Exit Strategies, Option Trading Basics
When considering covered call exit strategies on or near expiration Friday we compare the market price of our stock to the strike price sold. If the share value is even one penny above the strike, the option will most likely be exercised and our shares sold. We may...
Jul 7, 2012 | Option Trading Basics
We have all heard the term “the Greeks” as it applies to stock options. Most of us know that these factors somehow explain how certain parameters can impact the value of an option premium. To avoid facing some members of the BCI community claiming that...
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