For example, delta can tell you how much an option's price might change if the underlying security increased by $1 per share. Gamma: This is the change in delta caused by changes in options prices .

Using the same put example, the option would be out of the money at $49 per share or more. ... Time value (Theta): Options are worth more when the expiration date is further away.

As discussed in the first article, “The Hidden Potential of Learning How to Trade SPX and Gold Options” I pointed out that there are several fundamental principles that must be mastered before ...

Theta Decay in Options selling: Shubham Agarwal Option Premium keep reducing in value with the passage of time. For an option writer (seller) it is beneficial as we have a sell position in option ...

The second reason I and most other option sellers sell long-dated options (around 90 days) and monitor the 21-day mark is due to time decay as measured by Theta. Selling options like covered calls ...