Guest Posted January 17, 2018 Posted January 17, 2018 Reading Kim’s article on Greeks. Using this example, can someone pls explain why a 5% change in the stock price (in either direction) will produce a ~25% gain? I get the other Greeks decently but not understanding this. I’m sure this has to do with delta and gamma but don’t get the math here Delta: +$4.80 Vega: +$123.80 Theta: -$43.60 Gamma:+$1.98 stock price is $493. Quote
Humble Posted January 17, 2018 Posted January 17, 2018 Why you post here and not on the article? Quote
Guest Posted January 18, 2018 Posted January 18, 2018 Cause the article is on the seeking Alpha app. No place to post Quote
Humble Posted January 18, 2018 Posted January 18, 2018 Sorry, I thought you referring to article on our blog https://steadyoptions.com/articles/the-incredible-option-trade-in-vxx-r289/ Could you please point me to the SA article you referring to? Quote
Guest Posted January 18, 2018 Posted January 18, 2018 https://seekingalpha.com/article/357071-profiting-from-the-fight-of-the-greeks Quote
Humble Posted January 18, 2018 Posted January 18, 2018 The estimation was based on P/L chart. We don't need to do those calculations manually, any decent software has those P/L charts. Quote
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