Professional Trading through Option Theory

The basics of call option

Options can be traded on the Indian market for more than 15 years. However, real liquidity is only available since …

The Option Jargons

If one expects an increase in price for an asset, it makes sense to purchase a call option.The strike price …

Call Option - Buying

If you anticipate the underlying price will rise, it makes sense to buy a call option.The buyer of the call …

Call option -Selling/Writting

If you are bearish about a stock, you can sell a call option.Both the call option buyer (and seller) have …

Buying the Put Option

The buyer of a put option bets on the possibility that the stock price will fall (by expiry). To profit …

Selling the Put option

We understood previously that an option seller and buyer were like two sides to the same coin. They may have …

Call & Put Option - Summary

Only buy a call option, or sell a option if you anticipate the market going up.Only buy a put option …

Option contract - Moneyness concept

An option contract's moneyness is a method of classifying each strike (option) as one of three options: In the money, …

Delta - 'The option Greek' Section -1

Options Premiums, options Greeks, and the natural demand-supply environment of the markets all have an impact on each other. Each …

Delta - Section 2

Model Thinking is a science-based approach to trading that uses scientifically-based models.The spot value changes and the Delta changes, so …

Delta - Section 3

Nature is rich in the delta.A futures contract's delta is always 1.Two ATM options are equivalent to 1 futures contract.The …

Gamma - Section 1

Do you still remember high school calculus? Do you remember the words integration and differentiation? Back then, the word "Derivatives" …

Gamma - Section 2

The rate of change in delta is Gamma.Gamma is always a positive value for both Puts and Calls.Large Gamma can …

Concept of 'Theta"

As the expiration date approaches, all options - both calls and puts - lose value. The time decay coefficient, also …

The Basics of Volatility

Now that we have understood Delta, Gamma and Theta, it is time to learn about the Vega Option Greek. As …

Calculation of Volatility (Historical )

This chapter was written to explain the principles behind standard deviation calculations. It is essential to understand what goes beyond …

A study to Volatility and Normal Distribution

The 'Galton Board,' as it is commonly known, is what you see. A Galton Board is nothing but a board …

Application of Volatility

We will examine the applications in a later stage, however (in a separate module), under a topic called 'Relative Value …

Vega - Basics

The Vega is an option's rate of change (premium) for every percentage change in volatility. The vega, which can be …

Understanding the Greek Interaction

Volatility Smile is a fascinating concept that I consider to be 'good-to-know'.Theoretically, all options with the same underlying expiring on …

A Guide to 'Greek Calculator'

This module has covered all of the important Option Greeks as well as their applications. Now it is time to …

Re-calling Call & Put Option

Now we will revise the ''call & Put option''. We actually started this module by talking about the Call & …

Bringing to a conclusion

This module is now complete. I hope you have a good understanding of options. This was something I mentioned earlier …

Physical Settlement

The Indian currency was used to settle futures and equity trading until very recently. This means that buyers and sellers …

New Offers

Upstox

Open a demat account through us and get the account opening charges waived off

open paperless account