Here is an interesting characteristic of the Delta – The Deltas can be added up! Let me explain – we will go back to the Futures contract for a moment. We know for every point change in the underlying’s spot value the futures also changes by 1 point. For example if Nifty Spot mov...
But looking at delta as the probability an option will finish in-the-money is a pretty nifty way to think about it.Gamma Gamma is the rate that delta will change based on a $1 change in the stock price. So if delta is the “speed” at which option prices change, you can think of...
The overall build quality is also excellent - tight connections, a cable that has relaxed nicely, and a nifty case that keeps them snug and safe. I’ll update if I come up with any concerns, but a month of listening in, these are a brilliant value. (Edited) Was this ...
Keeping this in perspective, imagine this – you have predicted that Nifty will reach 8355 by 3:00 PM today. From the snapshots above we know that the premium will certainly change – but by how much? What is the likely value of the 8250 CE premium if Nifty reaches 8355? Well, this i...