Post feedCharacteristics of Volatility Spreads
In order to keep the bar high, I want to provide you with a very important chart when trading advanced options. This graph will help you remember exactly how a particular spread will be impacted by things like price movements, fluctuations in implied volatility, passing of time, etc. It also gives you an idea of whether you are positive or negative in the position of your greeks (i.e. gamma positive, short vega, etc). If it does not make a lot of sense now, remember where to find it when you start to gain a better understanding of advanced options trades.
Thank you for continuing to teach us about the volatility.
Posted by
Anonymous |
9/21/2006 08:51:00 PM