7. The Option Greeks

7. The Option Greeks - Delta

Рет қаралды 104,297

2 жыл бұрын

In the previous video, we learned about the concept of moneyness of an option. This helps you identify if an option is the in the money, at the money, or out of the money. In this video we move to greeks and there are 4 major ones you need to know when trading options: Delta, Gamma, Vega and Theta.
By now, you know that when the underlying of an option changes, the option premium too changes. But how do you figure out how much the option premium would change if for a given change in the price of the underlying? This is where delta comes in. It helps you figure by how many points the option premium would change for every 1 point change in the underlying. We'll learn about the other 3 greeks in the upcoming videos.
Learn more about Delta of an option here: zerodha.com/varsity/chapter/t...

Пікірлер: 29

@user-jf5kg8xg1f 2 жыл бұрын

Very very useful data for beginners, Zerodha Varsity is doing very good work and help millions of traders, DIL SE SALUTE

@unkshiva 2 жыл бұрын

This is better than paid curses for beginners

@Sree.M 7 ай бұрын

Simply the best in teaching. Hats off to you.

@educationspecial4187 2 жыл бұрын

Thank you Sir .....Your video is also simple to understand as simple your text to understood....I have gain lots of knowledge through ur content....Thanks a lot.

@sept271979 2 жыл бұрын

Excellent ! @karthik , good job man ! So for a one point increase in share price to one point increase in option price, it has to be deep in the money :-) excellent

@ankitbhutta7475 Жыл бұрын

Thank you sir you are doing great work.

@sangeethsanthosh6924 7 ай бұрын

Hi Zerodha Varsity Team, Indeed a very informative video on Options Greeks. Kudos to your efforts on making this an easily understandable topic. The Delta of a Put option ranges between 0 and -1. I think there was a typo in the video and even in the explanation too, as it was mentioned as 0.2 In the calculation of the new premium using the Delta of Put option which is shown in the video, the Delta was shown as 0.2 in the calculation. Shouldn't it be -0.2 as the Delta of a Put option ranges between 0 and -1? Feel free to correct me if I am wrong. Regards, Sangeeth

@anupkumarpatel2576 2 жыл бұрын

very informative

@mihirpatel5581 2 жыл бұрын

Sir pls discuss delta nutral strategy

@awangjeme2531 Жыл бұрын

Good teacher

@arjunswaminathan8388 Жыл бұрын

excellent video sir thanks a lot

@mathseducation6210 2 жыл бұрын

Sir please upload daily video.

@jaideepsinghhundal193 Жыл бұрын

Bro this is gold

@md8uniya684 9 ай бұрын

so can we say that an option having delta >0.5 will be favorable for option buyer??? technically a buyer will be profitable if his strike price becomes ITM and for seller his strike price should be in OTM or near ATM. little bit confused correct me if im wrong in my perspective.

@md8uniya684 9 ай бұрын

also we cant rely on this Delta as it will change in respect with other factors also.

@atulkirde8361 2 жыл бұрын

Absolutely gem.,,

@dcchase8225 3 ай бұрын

Please Explain Minor Greeks As Well

@ashishagrawal9999 Жыл бұрын

Sir on 12/9/22 at high of 9:30(15 min) candle the price of Bank Nifty was 40549.95 and at the close of 10:00 candle the price was 40641.40. Total movement = 91.45 Delta of 40500 CE at high of 9:30 was 0.52 Premium at high of 9:30 was 409.60 As per calculation, at the close of 10:00 the premium should have been- 409.60+(91.45*0.52)= 457 But on actual basis it was 442.85 Why there is so much difference.? On the other hand when the same option decreases it decreased by 11 points in comparison to a decrease of 12 points in the underlying I e, with a rate of approx 90% Pls clear my doubt as this is very confusing.