| Bassambasirxxxxxx |
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Member, TeleChart
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| Registered User |
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| Monday, April 6, 2009 |
| Wednesday, April 8, 2009 5:20:55 PM |
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QUOTE (wse) hey bigblock, i mean bassambasir (BB)
there are 6 factors not 7.. id like to hear what you think the '7' are
time value
change in stock price
time until expiration
interest rates
volatility
if you think delta is number 7 then youre absolutely wrong as implied volatility and delta are independent of each other
Sir, I am not sure what you are implying here. I have to say that what you have been posting here seems to be like a copy cat of a bad options book.
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After seen how popular this gentleman is, I decided to check some of his posts. I must admit that after reviewing all of his Market Analysis threads that he either has a strong knowledge about the markets and deep insight or he owns a magic cristal ball.
There is quite much accurate information in his predictions, and it seems not to be random. He has done it over, and over again.
I suppose I should read some more about what this gentlemen has to say.
Is he still around? or perhaps banned again
I have read some about some previous bannings.
Some times speaking your mind can bring much trouble. But it is true that most brillian minds had their share of trouble with opposing institutions.
Hopefully, he will find his way back into the forum soon.
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QUOTE (wse) not here to waste time arguing
as i was mentioning in my previous post, using greeks is another way to judge options rather than simply going in the money, at the money, or out the money by a certain# of strikes.. you can use the 'delta'
depending on your data provider, you can usually get info on option delta
option delta basically tells you the % the option will move with the stock...
for example, ABC at $100...
$100 call option may have a delta of .50, meaning that for every $1 that ABC moves, the option should move about .50
$70 call option may have a delta of .75 meaning that for every $1 that ABC moves, the option should move about .75
puts have negative deltas, but the same is true...
$100 put option may have a delta of -.50, meaning that for every $1 that ABC moves, the option should move about .50
$130 put option may have a delta of -.75 meaning that for every $1 that ABC moves, the option should move about .75
It seems to me that the information here is at the least misleading and incorrect.
Greeks are simply sensitivities to option risk charateristics. To understand this you have to go back to the definition of options, and then remember the seven factors that affect an option premium.
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QUOTE (wse) not here to waste time arguing
as i was mentioning in my previous post, using greeks is another way to judge options rather than simply going in the money, at the money, or out the money by a certain# of strikes.. you can use the 'delta'
depending on your data provider, you can usually get info on option delta
option delta basically tells you the % the option will move with the stock...
for example, ABC at $100...
$100 call option may have a delta of .50, meaning that for every $1 that ABC moves, the option should move about .50
$70 call option may have a delta of .75 meaning that for every $1 that ABC moves, the option should move about .75
puts have negative deltas, but the same is true...
$100 put option may have a delta of -.50, meaning that for every $1 that ABC moves, the option should move about .50
$130 put option may have a delta of -.75 meaning that for every $1 that ABC moves, the option should move about .75
It seems to me that the information here is at the least misleading and incorrect.
Greeks are simply sensitivities to option risk charateristics. To understand this you have to go back to the definition of options, and then remember the seven factors that affect an option premium.
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This is a great post. I think that banks and housing are starting to seriouly clear up inventory. I know for a fact that their clearance operations are even reaching middle east, and chinese markets.
Foreign investors are being market and encouraged to come to the US to buy real estate, and even loans are being made available to them.
It seems to me that REIT movement is a must for this economy to recover.
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