how do i calculate

Discussion in 'Options' started by met1989, Jul 17, 2018.

  1. met1989

    met1989

    how do i calculate how much .50% of a move in the underlaying of the option, how much will the option move?
     
  2. tommcginnis

    tommcginnis

    1) delta: you should know this already, just to have asked the question. What *is* delta?

    2) Google: a serious boatload of information which (unlike so much on the Interwebs, and especially so w.r.t. trading/investing) is pretty reliable.

    2.a.) shop for delta-gamma approximation,
    or delta-gamma-theta approximation,
    or Black Scholes Merton PDE for all of delta, gamma, theta, and vega.

    2.b.) "tastytrade" videos will come up. The more-recent crop is pretty accurate.
     
    learningoptiontrading likes this.
  3. met1989

    met1989

    @tommcginnis thanks