#TradeAndWin #OptionsTrading Options Trading & Greeks

Options contracts fall into two main categories: calls and puts. A call option allows its holder to buy the underlying asset at the strike price within a limited timeframe, while a put option enables its holder to sell the underlying asset at the strike price within a limited time frame. An option's current market price is known as its premium, which its seller (known as a writer) receives as income.

The Greeks — Delta, Gamma, Theta and Vega — are financial calculations that measure an option's sensitivity to specific parameters. Delta (Δ) shows the rate of change between an option's price and a $1 movement in the underlying asset's price. Gamma (Γ) measures the rate of change of an options delta, based on a $1 change in the underlying asset's price.

Theta (θ) measures the sensitivity of an option's price relative to the time it has left to mature (or expire). Vega (ν) measures an option's price sensitivity based on a 1% move in implied volatility

You may want to lock in a specific price for an underlying asset to better plan your future financial position. You may also want to buy or sell the underlying asset at an advantageous price based on a predicted price movement.