Added: 3 years ago
From: bionicturtledotcom
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  • Θ+(r-q)SΔ+0.5σ^2S^2Γ=rf

    gamma is "curvature"

    so,delta hedging with curvature is below

    ΔΠ=ΘΔt+(ΓΔS^2)/2

  • xgqYXGSXYYSXFCV

  • Excellent

  • @TimbergoSpielbergo thanks, short but sweet and supportive!

  • great exp. Thanks.

  • Can you explain how Delta, Gamma, etc, was calculated in this spreadsheet?

  • Do gamma rays mutate your mom's rho, or is her vega to sore from delta's theta?

  • Great

    

  • you are amazing!

  • Thanks for the excellent presentation. Althought at 4:21 you state "We have low delta close to 0 when the option is deeply Out of the Money, and also when the option is deeply in the money. The second part seems incorrect. Option delta for deeply in the money is 1.0".

  • What program are you using to check the Delta of an Option? I can't figure out how to check the greeks of an option at all. I been using Google and Yahoo Finance and they don't seem to have any way to view option greeks. I'm pretty new to this.

  • Theta, Vega and Rho are the rate of change in the portfolio value with respect to their respective variables, not the change in option price..

  • someone can tell me how to read gamma

  • someone can tell me how to read gamma

  • I am doing a MSc in Banking & Finance and I gonna start to do an internship in equity derivatives sales. Your videos are great to brush up my skills. Thx a lot for your fantastic work! Keep going!

  • yes he made a mistake ITM options have delta close to 1 @shuzhi6

  • Excellent explanation! Thank you!

  • very informative, thanks for taking the time to post this, I'm a big fan.

  • excellent, thank you very much

  • Very Good explanation of Options Greeks.

  • In exlaining Gamma, it is repeatedly quoting Delta.

  • Yes because gamma is rate of change of delta, so the Gamma plot is understood by rate of change in delta; e.g., gamma going to zero b/c delta is stabilizing.

  • When explaining Gamma, it is repeatedly saying Delta.

  • The 5th term should be Theta.

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