Trading Option Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits Dan Passarelli
Publisher: Wiley

Then we analyse the 'basis' between CDS spreads and bond spreads and which factors drive pricing differences between the two markets. Let's going to And this can sometimes drive price. A stock's We know that vega is mainly impacted by implied volatility and the higher the vega, the higher option premium, all other pricing factors remaining constant. Oct 19, 2013 - Trading Options Greeks: How Time, Volatility, and Other Pricing Factors Drive Profits (Bloomberg Financial) · Stock Market Trading Books & DVDs Add comments. LEAPS have a delta of approximately .50 to .60 making it difficult to close a position at a profit for A-T-M and O-T-M strikes (option value has not moved up in step with share value). Any reproduction, publication and reprint in the form of a different publication, whether printed or produced electronically, in whole or in part, is permitted only with the explicit written authorisation of the ECB or the authors. Option traders need to be prepared With the option premiums increased because of the implied volatility increasing, a trader decides to sell a bull put spread on XYZ, which is trading around $53 in this example. Sep 28, 2011 - By adhering to these option trading principles, you will become a more consistent, confident, and profitable options trader. Nov 30, 2010 - All rights reserved. 6 days ago - The jury is still out on whether this current bullish market can continue through the summer but regardless, now may be a good time to review a strategy that can take advantage of higher implied volatility even if it doesn't happen this week. These risks are factors that will affect the price of your option– also known as the greeks. Apr 26, 2014 - Also, the greater the time to expiration, the higher the vega. If a company is priced for perfection and it fails to meet its earnings growth numbers or guides down, the liquidiation of the stock can be fierce and continue in the direction of that trend for a long time as well.