Option Greeks Explained - COMPLETE BEGINNERS GUIDE (Part 4)

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  • Опубліковано 5 січ 2025

КОМЕНТАРІ • 247

  • @skyviewtrading
    @skyviewtrading  3 роки тому +55

    🚨 Hey all! Thanks for supporting the channel! If you’d like to see a more in depth breakdown of our current trading systems, we put together a quick video here - skyviewtrading.co/43DRbjn

  • @awakeenlighten2298
    @awakeenlighten2298 2 роки тому +37

    These options videos have been lifesavers. Most on youtube cannot explain it like this.

  • @XTRADERXNYC
    @XTRADERXNYC Рік тому +9

    I’m an options trader. I like to watch trading videos to laugh and remind myself how far I’ve come. This video however is really good. The gentleman recording this video is very trade articulate and it’s a great video unlike most vids on UA-cam. The only thing I would add is if you don’t know how to read charts, none of this stuff is relevant so put the work in learning charts. Never listen to the news and keep emotions at bay 😊

    • @skyviewtrading
      @skyviewtrading  Рік тому +4

      Thanks for the kind words! We do disagree with your last statement on charts a bit though. As neutral option premium sellers we can argue we don't even need to look at a chart to open and close our trades. Everything we need to make decisions can be found from the option chain! We like to say we are trading the probabilities and statistics from an option chain, rather than the opinions and emotions of a stock chart.

    • @XTRADERXNYC
      @XTRADERXNYC Рік тому

      @@skyviewtrading yes absolutely! I was taught to trade raw with no indicators. I just look for levels of interest and imbalances. I also traded the FX markets and that’s where I realized indicators and news don’t matter…at least for me and the way I trade. I realized the news always fits the chart. Even the options orders fit the chart too if you understand what I’m saying. A lot of people don’t lol. Good luck trading I hope you make a killing bro 🤝🤙💪🏼🙏

  • @joshuajohnson6534
    @joshuajohnson6534 Рік тому +32

    Your delivery and engagement are incredible! I know these are usually difficult concepts to grasp, but you do such a great job at teaching them!

  • @SoulfulMsSavannah
    @SoulfulMsSavannah Рік тому +18

    This is an amazing series! You are an exceptional educator. You have the ability to make hard concepts easy to grasp. Thank you!

    • @skyviewtrading
      @skyviewtrading  Рік тому +2

      Wow, thank you so much for the kind words! Keep up the hard work!

    • @ralphsawe7175
      @ralphsawe7175 Рік тому

      @@skyviewtrading I piggy back on this. Im in one of the worlds leading trading groups and our educators can't touch you. This is exceptional work man. It's helped me so much.

  • @ФилипФилипов-з2е
    @ФилипФилипов-з2е 3 роки тому +9

    Never really understood greeks completely, until i watched this video. Support.

  • @ran981248
    @ran981248 3 роки тому +54

    As an investor trying to refresh some key concepts, this has been really easy to understand and helpful. Keep it up!

  • @JustEasyOptions
    @JustEasyOptions 3 роки тому +39

    Why even make videos while Sky View Trading is out here making the best options videos out there!

  • @danmat3837
    @danmat3837 3 роки тому +54

    Another amazing video, clearest explanation I’ve seen anywhere by far. Keep up the good work guys.

  • @zhubarb
    @zhubarb Рік тому

    What really made these videos stand out are the real life examples from the option chain. Great work. Thanks.

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Glad you like them! Thanks for the kind words!

  • @nade2393
    @nade2393 3 роки тому +13

    Just watched the 4 videos as I will be beginning options next month and for now I’m doing my research and these videos are great!

  • @mattlamb2573
    @mattlamb2573 3 роки тому +4

    Great videos. Read a few books and watched other videos but got nothing until I watched this series. Thanks!

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Thanks for watching! We appreciate the support!

  • @drodmanfan8939
    @drodmanfan8939 3 роки тому +4

    I am so happy I watch this, it makes more sense now. Thank you

  • @zeusuk100
    @zeusuk100 11 місяців тому

    Your videos are the best explanations of options, thanks!

    • @skyviewtrading
      @skyviewtrading  11 місяців тому +1

      Glad you like them! Thanks for watching!

  • @aninditas7167
    @aninditas7167 2 роки тому +2

    Hello, all the videos were amazing and very knowledgeable. Thank you for making them available for viewing.

  • @curruption018
    @curruption018 2 роки тому +2

    Great series and concise work. I'm astonished at how much the viewer count drops off as you go further into the videos. People either give up or thing they are ready after one video

    • @skyviewtrading
      @skyviewtrading  Рік тому +3

      Much appreciated! And yes, it's high level stuff so it's not easy to keep up with!

  • @opufy
    @opufy 3 роки тому +2

    Wow 6 days a go, glad to see another new post. Greeks was long overdue!

    • @skyviewtrading
      @skyviewtrading  3 роки тому +1

      More to come!

    • @opufy
      @opufy 3 роки тому

      @@skyviewtrading love your videos, I remember watching them when covid started and knew nothing now look at me go, selling covered calls against my shares and selling puts here and there all properly calculated risks.

  • @MrAudacious21
    @MrAudacious21 2 роки тому +2

    Great video! Very understandable. I’ve been trading and studying for years. Learned a lot. Thanks!

  • @tiffanyagirlwithaguitar
    @tiffanyagirlwithaguitar Рік тому +1

    This is amazing. I really like the way you have presented this. Clean and easy to understand, straight forward. Thank you, this is so well done!!

    • @rebornkingofthule7067
      @rebornkingofthule7067 Рік тому

      Always buy shares not options.
      There is no spread for retail to make money any more
      You used to be a fine ass bomb intelligent woman 👠
      Now your just another grifter
      Dollar sign AMPE Ampio pharma
      Remember the number one thing affected by interest rates are short seller margin
      Don't listen to wall st fairy tales
      Your here to tax them increase there cost of doing business not be fleeced.
      Markets are expanding not contracting
      Low floats are salvation.
      Study ODum the only on to really ever do it.
      Otherwise your gonna be learning worthless T.A or stratagems that requires a 100 thousand dollar account
      All markets are indexed since Jack Bogle.
      They have to chase the flow of funds.
      Some times it's great to be a guppy
      Remember all comment sections are now heavily curated wall st. Bets is not organic
      Probably martin Martin shkreli brainchild if not Anton shkreli type

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Thanks for watching and for the kind words!

  • @hadassah22
    @hadassah22 2 роки тому +1

    This is the type of video and explanation of the Greeks I was looking for. Very informative and easy to understand l. Thanks

  • @ElizabethAntony-s8e
    @ElizabethAntony-s8e Рік тому

    Your videos are amazing! I'm a complete beginner and I've been able to make sense of all the concepts you've explained - thank you so much!

    • @skyviewtrading
      @skyviewtrading  Рік тому +1

      Great to hear! Thanks for watching and for the kind words!

  • @section31
    @section31 3 роки тому +6

    Damn dude well done. Never seen explanations this thorough before

  • @vivekr2056
    @vivekr2056 3 роки тому +2

    Thank you so much brother I really like it i have watched so many videos to understand the option Greeks but I understand clearly after watching this video thank you so much bro ( I am from India)

  • @Motiontrades
    @Motiontrades 2 роки тому

    I am 17 have been position trading stocks and trading crypto for about a year now , I am completely new to options have been going through this course and it helps me understand so much , my real question is how did y’all learn to study this and get consistent with it ? I take notes but what strategies do y’all recommend to actually knowing it without looking back through your notes

  • @hawkeyehowardinvesting3530
    @hawkeyehowardinvesting3530 2 роки тому +2

    Excellent video!! Clear and precise!

  • @KostasYoutube
    @KostasYoutube 3 роки тому +3

    I am glad I found your videos, very clearly explained!

  • @JayVariety
    @JayVariety 10 місяців тому +2

    Awesome

    • @skyviewtrading
      @skyviewtrading  10 місяців тому

      Thanks for digging through our channel! Keep up the hard work!

  • @makbarve
    @makbarve 3 роки тому +2

    Excellent Excellent Excellent Videos...!!!

  • @vincent4774
    @vincent4774 2 роки тому +1

    Great content! I had no idea about options trading 3 days ago and now I know the basics! Thanks man!

  • @manipulationmaniaproject5366

    Thanks for the video. Well explained and easy to understand. Keep up the good work,

  • @briancarpio9706
    @briancarpio9706 3 роки тому +3

    Yo this guys videos are super duper well done keep up the good work🔥🔥🔥🔥

  • @josebaez3729
    @josebaez3729 2 роки тому +2

    Thank you for the great info, I am just starting to learn about options and you make it look easy, simple and very informative.

  • @olliehopnoodle4628
    @olliehopnoodle4628 3 роки тому +6

    Oh wow, this just came out today. Great video! I had been looking for a clear and concise explanation and this video really helps.

  • @bakedfish3200
    @bakedfish3200 2 роки тому +1

    Can you make a video how to day trade options? Like what strike price and expiration dates to pick? I'm really learning alot from your videos. Thank you btw

    • @skyviewtrading
      @skyviewtrading  Рік тому

      We have a video in the works on this topic! In the meantime, checkout our video from today on Part 5!

  • @bd5866
    @bd5866 Рік тому

    Thank you for this tutorial, so easy to grasp!😎

  • @smontissol242
    @smontissol242 2 роки тому +1

    Love the video. Im a slow learner so I need to watch it about ten times before I get it. Lol…

  • @MoIbrahim970
    @MoIbrahim970 10 місяців тому

    Your videos are the best. Thanks for all the effort. Please explain how to get on the right side of theta? And have the time decay work for you? Thanks

    • @skyviewtrading
      @skyviewtrading  10 місяців тому +1

      Thanks for the kind words! Theta Decay works for you when you are an option seller. Selling options on entry is what gives you positive theta decay, which benefits from the passage of time. One of our favorite option strategies is the Short Strangle for example, which we have a video on in our channel. Hopefully that makes sense!

  • @oldtimehockey7123
    @oldtimehockey7123 2 роки тому +1

    I found this series especially helpful. I was dreading having to watch the greeks vid, but you were able to convey the info very clearly and was surprised to find the video enjoyable. Thanks!

  • @kayturner8457
    @kayturner8457 3 роки тому +1

    Thank you for clear and informative presentation.

  • @bidstrup6213
    @bidstrup6213 2 роки тому +21

    Is there a part 5 coming? Its very informative and well told

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Part 5 out now on our channel!

    • @AshtonTrade
      @AshtonTrade Рік тому +1

      @@skyviewtrading it took u a year?

    • @TRADE8MILLIONS
      @TRADE8MILLIONS Рік тому +1

      ​@zopie plays he replied to the comment and he made a part 5...what did you do? FFS🤣

  • @jakek5039
    @jakek5039 Рік тому

    Really informative content bro

  • @CHi3FKw33F
    @CHi3FKw33F 3 роки тому +2

    Good to see another video from you guys! Was a nice refresher course. Question about theta- does it decay continuously, lets say as each hour passes or is it only the next trading day?

  • @yaboobaker
    @yaboobaker 2 роки тому

    Your explanation is superb 👏

  • @k.v.2257
    @k.v.2257 2 роки тому +1

    Great videos! loved it!

  • @user-mo3tv1oo3o
    @user-mo3tv1oo3o 3 роки тому +1

    Your videos are golden!! You explain everything perfectly thanks!!

  • @youmeg
    @youmeg 4 місяці тому

    Great video. Thanks for sharing

  • @scottsmith4145
    @scottsmith4145 3 роки тому +2

    Does implied volatility typically increase as you get closer to an earnings report?

  • @srsethi1970
    @srsethi1970 Рік тому

    Great videos .,.... amazing 🤩

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Thanks so much for the kind words and for watching!

  • @walliswallis8099
    @walliswallis8099 11 місяців тому

    finally something clear thank you

    • @skyviewtrading
      @skyviewtrading  11 місяців тому

      You are welcome! Thanks for watching!

  • @MoIbrahim970
    @MoIbrahim970 10 місяців тому

    Thank you for the response.

  • @petertonn7409
    @petertonn7409 2 роки тому +2

    It took me a minute to realize that ToS presents your position greeks to represent the actual dollar amount, whereas the Option Chain greeks present it it as the cost per share (so to speak). Once I made that connection the math made much more sense :)

  • @danielcrymes6000
    @danielcrymes6000 9 місяців тому

    Best videos so far in explaining options. However, when discussing changes in Greeks value you keep referring to "point" changes but don't you mean "dollar" changes? There is a difference from a change in point vs. a change in dollar? You seem to go back and forth with these descriptions.

    • @skyviewtrading
      @skyviewtrading  9 місяців тому

      Hey, thanks for the kind words and for watching! As for your question, the terms "point" and "dollar" are the same in this case. You will hear people use them interchangeably when chatting about the option market. Hopefully that makes sense!

  • @maheshthorat7913
    @maheshthorat7913 3 роки тому +2

    Please make video on iron condor live and it's adjustment

    • @skyviewtrading
      @skyviewtrading  Рік тому

      We have an iron condor video out! Just search our channel for "Iron Condor" and you should see it!

  • @No-Handle-NO
    @No-Handle-NO Місяць тому

    Subscribed, happily!

  • @bigc3748
    @bigc3748 3 роки тому +1

    Great video thanks

  • @daviddoerr9842
    @daviddoerr9842 2 роки тому +1

    Great videos! Thank you! Is there a part 5 ?

  • @TradingLiveofficial
    @TradingLiveofficial 3 роки тому +1

    My favorite & Beautiful Video Share/ New member
    Stay safe, stay happy,
    stay connected🔔🔔 Full ⌚

  • @DiamondForevah
    @DiamondForevah 2 роки тому +1

    Nice serie! Will you release other videos?

  • @nottheone831
    @nottheone831 2 роки тому

    Thinking of buying 16$ call options for September in Amc

  • @zijianlo4220
    @zijianlo4220 2 роки тому

    Also I thought in 1 options contract it consist of 100 shares. Why in the example @11:35 that by longing 50 share and the price goes up by 1 point = delta being 50

  • @momin4728
    @momin4728 3 роки тому

    Small question: if The stock moves up 1 point do I add gamma to delta and then add it to the option price or do I just add delta to the option price then add gamma to delta to find the new delta value for the next change in stock price?

  • @cembirler
    @cembirler 10 місяців тому

    8:25 Why did P/L decrease by $8.98 As far as I understand $8.98 is just for 1 contract aka 100 stocks so profit should have decreased by $898?

    • @skyviewtrading
      @skyviewtrading  10 місяців тому +1

      Hello! You are correct that losing $8.98 on an option trade would be an $898 loss per contract traded. At that point we were talking about what we lost on the option trade, rather than what that translated to in dollars lost in the account. Hopefully that makes sense!

  • @charlypetra191
    @charlypetra191 2 роки тому +1

    Thanks...More Clearly Define 1 point??? is it a percent, a dime, a dollar... I had to google it.

  • @prabhatnaik5868
    @prabhatnaik5868 3 роки тому +2

    Waiting eagerly for part 5

  • @giancarlolacerda937
    @giancarlolacerda937 3 роки тому

    I have a quick question about the theta. The daily price change it starts to count when you buy the option or at the market open and close time?

  • @ramum2579
    @ramum2579 3 роки тому +1

    Waiting for your video 🤗😊

  • @0xRafito
    @0xRafito 2 роки тому +1

    What do you mean by 1 point, $1 or 1% increases?

  • @deany1620
    @deany1620 3 роки тому +1

    I really appreciate your videos. I've been studying and paper-trading since November 2020, but just ran across Sky View's videos a couple of months ago. I just started trading options in Sept 2021 (two weeks ago) for real on the ToS platform, at least partly thanks to the info I've gleaned from you. Thank you!

  • @moesadr3342
    @moesadr3342 Рік тому

    Can they be used to filter and find good options to trade? Anyone knows any tools or guide lines on how to use Options Greeks for entering a trade either long or short? Kind of what values to look for in each or all of them to enter or exit a trade?

    • @skyviewtrading
      @skyviewtrading  Рік тому

      They sure can! We focus on what exactly to look for in our membership courses!

  • @FlamertheGamer23
    @FlamertheGamer23 8 місяців тому

    This guy is such a good teacher, i would be keen for him to do a course for me, how can i get in touch

    • @skyviewtrading
      @skyviewtrading  8 місяців тому

      Hey, thanks for the kind words! You can check out our premium service using the link below!
      go.skyviewtrading.com/iv-league-training-page-dt?el=whats_next_discord

  • @PrashantJaiswalbhaiji
    @PrashantJaiswalbhaiji 3 роки тому +1

    robinhood has an extra greek, Rho. what is that?

  • @galbello7680
    @galbello7680 3 роки тому +1

    Hi @skyViewTrading.
    Where do you publish Part 5/6/7/8...?
    Where can we get the full videos list? Playlist?
    Thank you.

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Part 5 out now! Make sure to subscribe and turn on notifications so you get them when we release new videos!

  • @oldtimehockey7123
    @oldtimehockey7123 2 роки тому

    Because the info was so clear, it seems to me that the first two columns are the first and second derivative of the strike price, wrt...something, not sure what though.

  • @zijianlo4220
    @zijianlo4220 2 роки тому

    Can someone please help me out, I am abit lost. Why does the delta in the SPX example is so high at 8.98. At the start the of the video the example raised was that delta was 0.47 and that every point the underlying stock increase it the value of the option will increase by 47cents and that if we own 1 contract we would make $47. Does that mean that in the SPX example if I had 1 contract of SPX and SPX goes down by 1 point I would make $898 on the option?

  •  Рік тому

    When you speak about position Greek in spx in the video that trade is a put ?

    • @skyviewtrading
      @skyviewtrading  Рік тому +1

      Hello! Option Greeks are for example, Delta, Gamma, Theta, And Vega. Both puts and call prices are dictated by the option greeks. Hopefully that makes sense!

  • @axekick1989
    @axekick1989 2 роки тому +2

    what is the name of the intro/outro song?

    • @johnpeace8613
      @johnpeace8613 2 роки тому +1

      "The Only Way is Up" by Martin Garrix & Tiesto

  • @Luc9Nine
    @Luc9Nine Рік тому

    i didin't understand how would you lose money if the stock price is going up, did you bought a put that spx would go down? is that it?

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Hello! The example showed buying 100 shares of stock and also buying 1 put option. The put option can be thought of as a "hedge." When you buy a put you are betting the price of the stock will go down. Your risk is limited to what you pay for the put.
      In the example we purchased the put for $500. We assumed that expired worthless and we lost the $500. However, we made $700 on the +100 shares of stock we owned. That's a net profit of $200. Hopefully that helps!

  • @stasiacasselman8039
    @stasiacasselman8039 10 місяців тому

    Confused about the difference between gamma and delta. So if the stock goes up one point the delta goes up to whatever the delta says. But is that only on the first point raise? If it raises another point then the delta raises to whatever the gamma estimates? I know it’s all probabilities. Hope that question made sense

    • @skyviewtrading
      @skyviewtrading  9 місяців тому

      Hello! Yes I think the question makes sense. Keep in mind there are many moving parts that are changing with every second the market is moving, but we can generalize what is going on. We start at a certain delta and gamma number. With every 1 point rise in the stock the delta number will change, and the gamma number is telling you the rate at which delta would change. Once the stock is 1 point higher the options will show different delta and gamma numbers and the process restarts. However, in reality the process is continually running with every second the market is moving and changing delta/gamma amongst other greeks.
      While these things can be fun to "geek out" on a bit try not to overthink it too much! When we are actually trading, we pay little attention to diving into the greeks like this on every trade. The option greeks just need to be understood from a broad picture view, so don't let them stress you out too much!
      Keep on moving forward and learning more!

  • @paulo_select
    @paulo_select Рік тому

    the best !!

  • @Singh-harjinder
    @Singh-harjinder 2 роки тому +1

    Short strangle on expiration day or iron condor which strategy works better for beginners?

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Check out our Iron Condor and vertical spread tutorial videos! I'd start there!

  • @hxnraziel
    @hxnraziel 3 роки тому

    Confused. How does theta be positive and earn money as time passes? when value of option should drop as the expiry draws closer.

  • @dlg0120
    @dlg0120 Рік тому

    luv it!!!

  • @nikoxian792
    @nikoxian792 2 роки тому +1

    Love it

  • @banshanbok
    @banshanbok Рік тому

    May God bless u

  • @jackdarcy6922
    @jackdarcy6922 3 роки тому +1

    I have a question that's confusing me if anyone knows the answer, I know a contract represents 100 shares of the underlying stock(usually), so if the Delta is 2.00 and the stock goes up a point would it affect the P/L 2x100 for each share(up $200) or would it just change by $2. And the same question applies for all the other Greeks to.

    • @juxta5824
      @juxta5824 3 роки тому

      It would change by $2 as it is reflective of the number of shares you are long or short of the underlying market

  • @RexHand
    @RexHand Рік тому

    Are the position greeks exclusive of your trading platform?

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Hello! No they are not, every trading platform a brokerage has will offer them.

  • @jackman3503
    @jackman3503 Рік тому

    thx!

  • @cryptomadic1650
    @cryptomadic1650 Рік тому +1

    Hey, cheers for the educational videos... but aren't you explaining 'Vega' the wrong way round... shouldn't a Vega of '0.1' imply that, if said options price increases by $0.10 then implied volatility would increase by 1%, rather than the other way around as you described.. ?

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Hello, and thanks for the kind words! Nope, your explanation is a bit backwards there. Vega is the Greek that measures an option's sensitivity to implied volatility. It is the change in the option's price for a one-point change in implied volatility. Similar to how delta is the change of an options price for a one-point move in the stock's price. Hopefully that helps!

  • @jondamico3829
    @jondamico3829 3 роки тому +1

    Anyone else confused about the Position Greeks? I understood the Greeks but was totally lost once it started going over "Position Greeks". I'm still confused about the whole explanation, and how it seemed like the Greeks previously reviewed were inverted? I understand Delta, Gamma, Theta, and Vega but got super lost once Delta was negative, Theta positive, etc. Any clarification would be greatly appreciated. Videos otherwise were awesome!

    • @HeyTFox
      @HeyTFox 3 роки тому +1

      Same here. Everything was so clear until he went to "Position". However, he did not define "Position".

  • @edgarfernandez8377
    @edgarfernandez8377 2 роки тому +1

    Perfecto

  • @freegrant2267
    @freegrant2267 Рік тому

    What's the difference between option theta n position theta

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Hello! An individual option will have it's own theta component, and a position that has many options will have a net theta for that position as a whole.

  • @Benjammy
    @Benjammy 2 роки тому

    How much does a stock have to increase to be considered +1 point?

    • @sainc3499
      @sainc3499 2 роки тому

      DM ⤴️ got something profitable to share with you .......

    • @skyviewtrading
      @skyviewtrading  Рік тому

      $1.00. Like AAPL going from $102 per share to $103 per share.

  • @HD-Tech
    @HD-Tech Рік тому +1

    I thought this was easy to understand during parts 1 and 2 however parts 3 and 4 complicated things for me quite a bit

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Hello! That is natural. It is high level finance, so it's natural to be overwhelmed in the beginning. It will become easier as you stick with it. We also have more in-depth and hands-on training on our website for members!

  • @kennethsparks6577
    @kennethsparks6577 11 місяців тому

    How did you get the -8.98 Delta for the 10 contracts?
    Or is that a mistake, and you meant -8.98 Delta for 1 contract and -89.8 Delta for 10 contracts?
    I am confused.

    • @skyviewtrading
      @skyviewtrading  11 місяців тому

      Hello! The delta number is given to us from our trading platform. It's the sum/difference of all the deltas of the short strikes and long strikes. For example, if the short put spread of the Iron Condor generated +20 deltas and the short call spread of the Iron Condor generated -29 deltas, the net delta number would be -9 deltas. In the example of the video we had -8.98 deltas with 10 contracts. We noted with 100 contracts we'd have a delta of -89.80. Hopefully that helps!

  • @davidzhang2319
    @davidzhang2319 2 роки тому

    if a 1 dollar price movement in the stock price correlates with delta why does the option have a breakeven point in order to make a profit. If the stock moves 1 dollar and delta is 0.7, you would have made a 70 dollar profit, why does the stock need to move 10, 20 percent to begin making money? Why does the stock have a breakeven point? The underlying option premium would have moved 0.7 in this case, but since 1 contract is 100 shares you would have made a 70 dollar profit.

  • @watkletlyngkhoi6940
    @watkletlyngkhoi6940 4 місяці тому

    Is theta fixed number?

  • @remali26
    @remali26 3 роки тому

    What kind of Greek letter is Vega?

  • @picabloo
    @picabloo 3 роки тому +1

    In the last video, you explained that time decay is always working against us because the extrinsic value goes down. Here you mentioned time decay (Theta) is working FOR us, but you didn't explain how or why

    • @christianbrandl6854
      @christianbrandl6854 2 роки тому

      When you buy an option (long put and call), time is against you - if you short an option (put and call), time is working in your favor!

  • @mohammedlayes9248
    @mohammedlayes9248 Рік тому

    Sorry to ask, is 1 'point' the same as 1 dollar?

    • @skyviewtrading
      @skyviewtrading  Рік тому +1

      That's a good question -- and yes it is the same thing!

    • @mohammedlayes9248
      @mohammedlayes9248 Рік тому

      @@skyviewtrading Great! Thank you for taking the time to reply! Have a great day!

  • @TraderRobin
    @TraderRobin Рік тому +1

    Wait, an index isn't tradable? Since when??
    I've been trading the ES, NQ, YM & RTY indexes for many years!

    • @skyviewtrading
      @skyviewtrading  Рік тому

      Hello! We meant the cash indexes you cannot buy shares of stock. For example, SPX and NDX Cash Indexes for the S&P and Nasdaq.