There are various Options Greeks like: Delta, Gamma, Vega, Rho, Theta.

A complete guide on how these #Option Greeks impact option price.

1/ Delta:

Delta is a measure of the sensitivity of an option’s price changes relative to the changes in the underlying asset’s price. In other words, if the price of the underlying asset increases by 1 points, the price of the option will change by delta amount.
Call option has positive delta, and put option has a negative delta.

As the options become ITM, the value of delta tends towards +1 for call and -1 for put.

Delta is important greeks to determine the hedge ratio for investors who want to hedge their portfolio.
2/ Gamma:

Gamma (Γ) is a measure of the delta’s change relative to the changes in the price of the underlying asset.
If the price of the underlying asset increases by 1 points, the option’s delta will change by the gamma amount.

Long options (call/put) have positive Gamma.
Gamma decreases as options move away from ATM, i.e. as options become OTM/ITM.

Think like this, Delta is basically the velocity and gamma is acceleration as taught in the physics.
3/ Vega:

Vega (ν) is an option Greek that measures the sensitivity of an option price relative to the volatility of the underlying asset. If the volatility of the underlying asset increases by 1%, the option price will change by the vega amount.
An increase in vega generally corresponds to an increase in the option value (both calls and puts) and a decrease in vega means a decrease in the option value for both calls and puts.

Rising vega is a friend of option buyers and falling vega is a friend of option sellers.
4/ Rho:

Rho (ρ) measures the sensitivity of the option price relative to interest rates and it is least significant Option Greeks because option price are less sensitive to interest rate. If an interest rate increases by 1%, the option price will change by the rho amount.
If the interest rate rises, then the value of the call option will rise and the value of put option will fall.
Similarly, if the interest rate decrease, then the value of the call option will fall and the value of the put option will rise.
5/ Theta: Most important Option Greeks for Option Seller.

Theta (θ) is a measure of the sensitivity of the option price relative to the option’s time to maturity. If the option’s time to maturity decreases by one day, the option’s price will change by the theta amount.
Theta is negative for both call and put options. As the expiry date is fixed and as options move closer to the expiry, the premium will go down or melt.

Also, the value of the option for far expiry will be more than near expiry as it has more time left for expiry.
This is the complete digest for the Options Greeks.
For me, the most important Greeks are Theta and Vega, as I am an option seller.

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More from Yash Mehta

#RS is an indicator which helps in finding strong stock or index in the market.

This learning thread would be on
"𝙐𝙨𝙚𝙨 𝙤𝙛 𝙍𝙚𝙡𝙖𝙩𝙞𝙫𝙚 𝙎𝙩𝙧𝙚𝙣𝙜𝙩𝙝"

Shared some strategy.

Like👍 & Retweet🔄for wider reach and for more such learning thread in the future.

1/22

Most of us would confuse it with Relative Strength Index (RSI) but Relative Strength is a different indicator.

We have already covered about "Uses of RSI" in below thread👇
https://t.co/oTOrW7joNI

One can go through this if you haven't.

2/22


Now coming to Relative Strength (RS).

It is basically a strategy used in momentum investing which shows strength or weakness between two asset classes (two stocks, index, commodity).

One can read about this in below

As of now, I am using this indicator on .@tradingview platform.

It's free and one can add it in their Tradingview account as well, using this link👇
https://t.co/FxCjJFsNOG

There are multiple variants in this as well. Some traders use multiple time frame RS.

4/22

RS basically compares returns of one stock/index with the returns of benchmark stock/index at a particular time horizon.

Let's say, I want to analyze TCS and Benchmark Index is Nifty.

5/22
In the early stage, most of the traders & investors use indicators in their analysis.

Here is a master thread of how most of the indicators can be used in trading/investing to increase accuracy for free🧵:

Also, the last indicator and strategy is my favourite of all in trading.

1/ Moving Average is a very common indicator.

This thread is on what are the different ways of using the moving average


2/ RSI is one of the momentum indicator for traders.

In this thread, I have shared different ways of using RSI. Also, an investing strategy is shared, which can help you to pick stocks that can give you good


3/ CCI is another amazing indicator that is used by momentum traders.

Shared few strategies with CCI which a trader and investor both can


4/ CPR is one of the most popular indicator in the trading community.

This thread covers everything about the CPR indicator and how to use this indicator in

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A THREAD ON @SarangSood

Decoded his way of analysis/logics for everyone to easily understand.

Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen

1. Keeps following volatility super closely.

Makes 7-8 different strategies to give him a sense of what's going on.

Whichever gives highest profit he trades in.


2. Theta falls when market moves.
Falls where market is headed towards not on our original position.


3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result

He believes in a market operator, if market mover sells volatility Sarang Sir joins him.


4. Theta decay vs Fall in vega

Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
🌺कैसे बने गरुड़ भगवान विष्णु के वाहन और क्यों दो भागों में फटी होती है नागों की जिह्वा🌺

महर्षि कश्यप की तेरह पत्नियां थीं।लेकिन विनता व कद्रु नामक अपनी दो पत्नियों से उन्हे विशेष लगाव था।एक दिन महर्षि आनन्दभाव में बैठे थे कि तभी वे दोनों उनके समीप आकर उनके पैर दबाने लगी।


प्रसन्न होकर महर्षि कश्यप बोले,"मुझे तुम दोनों से विशेष लगाव है, इसलिए यदि तुम्हारी कोई विशेष इच्छा हो तो मुझे बताओ। मैं उसे अवश्य पूरा करूंगा ।"

कद्रू बोली,"स्वामी! मेरी इच्छा है कि मैं हज़ार पुत्रों की मां बनूंगी।"
विनता बोली,"स्वामी! मुझे केवल एक पुत्र की मां बनना है जो इतना बलवान हो की कद्रू के हज़ार पुत्रों पर भारी पड़े।"
महर्षि बोले,"शीघ्र ही मैं यज्ञ करूंगा और यज्ञ के उपरांत तुम दोनो की इच्छाएं अवश्य पूर्ण होंगी"।


महर्षि ने यज्ञ किया,विनता व कद्रू को आशीर्वाद देकर तपस्या करने चले गए। कुछ काल पश्चात कद्रू ने हज़ार अंडों से काले सर्पों को जन्म दिया व विनता ने एक अंडे से तेजस्वी बालक को जन्म दिया जिसका नाम गरूड़ रखा।जैसे जैसे समय बीता गरुड़ बलवान होता गया और कद्रू के पुत्रों पर भारी पड़ने लगा


परिणामस्वरूप दिन प्रतिदिन कद्रू व विनता के सम्बंधों में कटुता बढ़ती गयी।एकदिन जब दोनो भ्रमण कर रहीं थी तब कद्रू ने दूर खड़े सफेद घोड़े को देख कर कहा,"बता सकती हो विनता!दूर खड़ा वो घोड़ा किस रंग का है?"
विनता बोली,"सफेद रंग का"।
तो कद्रू बोली,"शर्त लगाती हो? इसकी पूँछ तो काली है"।