Factors Affecting Option Prices
Option prices (or premiums) are influenced by several variables, collectively known as the Option Greeks:
Delta: Measures how much the option price changes for a ₹1 move in the underlying asset.
Gamma: Measures how much Delta changes with each ₹1 move in the underlying.
Theta: Measures time decay — how much the option loses value as expiry approaches.
Vega: Measures sensitivity to volatility — higher volatility increases option prices.
Rho: Measures sensitivity to interest rates (less relevant for short-term trades).
Among these, Theta (time decay) and Vega (volatility) play a major role in intraday and short-term trading.
Option prices (or premiums) are influenced by several variables, collectively known as the Option Greeks:
Delta: Measures how much the option price changes for a ₹1 move in the underlying asset.
Gamma: Measures how much Delta changes with each ₹1 move in the underlying.
Theta: Measures time decay — how much the option loses value as expiry approaches.
Vega: Measures sensitivity to volatility — higher volatility increases option prices.
Rho: Measures sensitivity to interest rates (less relevant for short-term trades).
Among these, Theta (time decay) and Vega (volatility) play a major role in intraday and short-term trading.
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publicaciones relacionadas
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.