Facebook trading video that discusses the stock and option trades done the day after the ‘wild’ earnings released. The trading day ended with a ratio put short and ratio call short, along with long facebook stock.
OptPos [option position] trading worksheet video showing how it is used for entering option trades and positions to get both a graph showing profit at expiration, as well as current profit at any given date, based on the change in theoretical value of the position.
Options trading spreadsheet video that discusses the StkOpt worksheet that can plot the stock option position profit at expiration, along with also plotting a stock trade only position for comparison.
Options trading spreadsheet video that discusses the GreeksChg worksheet and how theoretical value and the option greeks change over a 30 day period, including the differences that occur from changes in the underlying and/or volatility.
Options trading spreadsheet video that discusses the greeks worksheet inputs and outputs, especially with regards to the volatility input and what number to use. There is further discussion on ways that this worksheet can be used for projections and trading decisions.
The option greeks, delta, gamma, theta, and vega, are output from the options pricing formula. These different components provide information that can be used for projecting options price movement and trade selection.
Options pricing video that introduces the option greeks, implied volatility, and theoretical value projections using our options trading spreadsheet.
Download link for microsoft excel options trading spreadsheet file. […]
In contrast to the math to expiration and profitability for long options being based on intrinsic value, the option math for short options is based on time value – the amount that you sold the option for that is time value at expiration is the profit in your trade.
Understanding long options trading math to expiration is the starting point for understanding other trading math, like figuring out how much and in what direction an option day trade will move. The value of long options at expiration is based on its intrinsic value, or the amount the option is in the money at that time.
Copyright © 2023 Tactical Trading, LLC.