Options: Delta, Gamma etc.

[NateoStrike]

Hello

Can someone with experience please help me out. On all tutorials for Options (YouTube) trading the software people use clearly shows the "delta, gamma, theta, Vega" next to the options price. I use CommSec for regular trading but I can't find anywhere where I can get this information.

Where can I go for this info when trading on the ASX? Many thanks.

Kind regards

 

[Virge666]

Interactive Brokers is where you want to be for this...

good luck with ASX Option trading, it is brutal.

 

[JJ10]

Interactive Brokers is where you want to be for this...

good luck with ASX Option trading, it is brutal.

Hi Virge66,
How would you actually use delta, gamma, theta, Vega for selling options. I have seen videos which explains theory but not the practical examples specially for writing options.

 

[ducati916]

These chaps will help you learn the basics and the more advanced stuff:

https://www.tastytrade.com/tt/?locale=en-US

jog on
duc

 

[Virge666]

Hi Virge66,
How would you actually use delta, gamma, theta, Vega for selling options. I have seen videos which explains theory but not the practical examples specially for writing options.

I seek the 30 delta option.... Most of the time.. Forty to fifty days to expiration

 

[Warriortrader]

Or if you are a bit more risk averse, then short the 16 delta (one standard deviation approx) ...will give you a higher probability of profit, but that comes at a cost, you collect less premium.

 

[drequejo]

Hi Virge66,
How would you actually use delta, gamma, theta, Vega for selling options. I have seen videos which explains theory but not the practical examples specially for writing options.

Sorry for the late answer. For covered call you only need to focus on Delta. Delta is the % that will

Hi Virge66,
How would you actually use delta, gamma, theta, Vega for selling options. I have seen videos which explains theory but not the practical examples specially for writing options.

Hi, if you are thinking in covered call, you only need to be focus on Delta. Delta indicates the increase or decrease in the price of the option in response to a 1$ movement of the underlying asset price. Some people associate Delta with the probability of expire ITM, eg. Delta 16 means it has a probability of 16% of expire ITM. This is not 100% accurate because it depends on volatility and other factors and it would be changed during the time we are close to expiration. But in summary, the more close the strike is to the price the higher is Delta and more prime is collected, but more probabilities has to expire ITM and be assigned.

For selecting the strike for the covered call you need to understand the underline, its volatility, where it has supports and resistances and have and strategy of rolling the call if you don't want to be assigned.