OPTION FOUNDATION – TIME DECAY – IMPLIED VOLATILITY AND GREEKS

Options strategies are based on time decay. Advanced option strategies are largely based on time decay. File Size: 1.2GB

---

OPTION FOUNDATION – TIME DECAY – IMPLIED VOLATILITY AND GREEKS

SECTION 1 – TIME DECAY

Options strategies are based on time decay. Advanced option strategies are largely based on time decay. We will be studying the concept in greater detail in this section. There are several options. “wasting” Assets lose value each day. Time decay causes damage to the buyer, while the seller reaps the benefits. As an option expires, the speed of time decay increases exponentially. It also acts as a great equalizer between buyers and sellers of Options. Time decay is the greatest equalizer between the risk/reward profiles of Options buyers and sellers. Many advanced and intermediate strategies are built on selling premium options (option sellers). These positions can make a profit as a result of the time decay in these options’ value over time.

Download immediately OPTION FOUNDATION – TIME DECAY – IMPLIED VOLATILITY AND GREEKS

Master what you will learn

How does time decay benefit Option sellers?

This is a complete overview of the buyer and seller risk profiles and their reward profiles

Why is the stock seller not interested in movement of options

Time decay is the great equalizer between sellers and buyers of Options

The concept of time decay can be applied to real-world examples

How can we observe Time deacy of Options on the financial markets?

Demonstration Time Decay using AAPL Option

SECTION II IMPLIED VOLATILITY AND OPTION PRICES

Implied volatility is “wildcard” In Option prices. You will be charged if you ignore it. It is so crucial that we have at minimum four varieties of volatility: Volatility. Implied Volatility. Historical Volatility. Future or Expected Volatility. The real is what we use-The concept of Volatility is explained in simple terms by world examples. We will then examine how Volatility in Stocks or Options is quantified. Then we will see how Volatility is quantified in Stocks and Options.-Door to embed itself in Option prices When choosing between buyer and seller profiles, Implied Volatility is a critical consideration. This complex topic is broken down into simple terms. We will show you an example for NFLX and CAT options to make it clear.

Master what you will learn

What is the method of determining Option prices? Is there an unknown variable?

Why is it so difficult to calculate or determine the Implied Volatility in an Option

Why is this so? “implied” Volatility

How does Implied Volatility manifest into Option prices

It is the reason it is so “wildcard” Prices for Optional Products

A real-world example of volatility

What is the relationship of Option prices and Implied Volatility?

How should buyers and vendors view Implied Volatility

Are there better strategies for high volatility situations?

How can Implied Volatility be observed in real Option prices?

SECTION 3 – OPTION GREEKS, DELTA. GAMMA. VEGA. THETA.

The Greeks make up your instrument panel, if you are the pilot of an airplane. You don’t know how to properly manage your instrument panels. Every Option position requires an understanding of the Greeks. This course is broken down into easily understood chapters for each of the four Greeks, including Delta, the king among all Greeks. Gamma is the silent operator. Theta is every Option seller’s ideal. Vega – Be on the lookout for this one. Many beginners to Options ignore the Greeks. Learn the Greeks quickly and you can cut down on months of learning. You can also fly your plane on the Greeks. “auto-pilot” (With help from the Greeks).

Master what you will learn

All movements in Option Prices are governed by the following four Greeks

Each individual Greek’s impact on the option price

Why Delta is the King of All Greeks

What is directional risk?

How does each Greek impact a buyer of Options and a seller?

Understanding your Option position requires understanding the Greeks

How the Greeks affect your choice “moneyness” Expiry Series

SECTION IV – OPTIONS MARKET STRUCTURE, TERMINOLOGY, MARKET MAKERS AND Continue reading

We need to be familiar with a variety of terms used in the Options market. We will start with terminology differences, such as “Long” “Short”We will be covering all details related to the Options market. We will explain important processes such as Assignment and Exercise as well as Expiry series and Bid.-Ask spreads, Brokerage, transaction costs, and other details. What is Open Interest? How important is it and what are the responsibilities of Market Makers? We will discuss the various Order types, which are most important for average investors, and which ones work best in different situations. We also discuss Regulation T margin as it applies to Portfolio margin as well as Options.

Master what you will learn

What does Open Interest say about liquidity?

What are Assignment and Exercise? How does it work?

What does Open Interest tell us?

Which Order type is best?

Download immediately OPTION FOUNDATION – TIME DECAY – IMPLIED VOLATILITY AND GREEKS

What is the role for Market Makers on the Options market?

How is Regulation T margin calculated, and what is Portfolio Margin?

This course is designed for the following:

People who understand the basics of Call Options and Put Options will be able to make informed decisions. This course is essential to your understanding of how Options work. These concepts are essential to your understanding of Options.

 Here’s what you can expect in the new book OPTION FOUNDATION – TIME DECAY – IMPLIED VOLATILITY AND GREEKS

OPTION FOUNDATION – TIME DECAY – IMPLIED VOLATILITY AND GREEKS Sample