no analysis of greeks when trading options

Discussion in 'Options' started by nixodian, Aug 22, 2010.

  1. Good post!
     
    #11     Aug 23, 2010
  2. Does it matter? :D
     
    #12     Aug 23, 2010
  3. sws2179

    sws2179

    It's true especially for day trading; anything below .01 will not change the premium even if the stock moved by 1-2%.
     
    #13     Aug 23, 2010
  4. Read what rew wrote again.
     
    #14     Aug 23, 2010
  5. sonoma

    sonoma

    There's a bit of confusion here. Greeks indicate semi-quantitatively/qualitatively where risk exists for an option position. Position greeks of an inventory can't be discerned from a price chart.
     
    #15     Aug 23, 2010
  6. Greeks only matter if you're properly sensitive to the mark-to-mkt of your position before expiry.
     
    #16     Aug 24, 2010
  7. Hey Spin,

    No flak. The Greeks are used to measure risk. If a trader doesn't want to measure risk, that's his/her business.

    Mark
     
    #17     Aug 26, 2010
  8. You have some very bad misconceptions.

    1) A broker doesn't give you anything

    2) The person with whom you trade - the person who takes the other side of the spread - that's the person who fills your order. that's eh person who 'gives' you a price.

    3) The market maker is thee to get 'better than mid-point' prices. Why would you anticipate hat anyone would want to fill your order at such prices. As the retail trader, you pay worse than mid-point.

    Mark
     
    #18     Aug 26, 2010
  9. spindr0

    spindr0

    Hey Mark, LTNS

    No flak back atcha :)

    As I stated, I just don't see what Greeks will do for a covered call writer. You know you buy price and premium received. You know your cost basis, return if unchanged, return if assigned, etc. Every day you know where you stand - stock gain or loss and premium decay/change. What's alpha, beta, vega and schmega going to tell you that's so important? :)
     
    #19     Aug 27, 2010
  10. imo, both yes and no, very much strategy-, timeframe- and style-specific! Just 2 cents!
     
    #20     Aug 30, 2010