Option pnl

Discussion in 'Options' started by clarodina, Nov 7, 2016.

  1. That's when he lets out your suit?
     
    #11     Nov 8, 2016
  2. Robert Morse

    Robert Morse Sponsor

    Thx, above my pay grade.
     
    #12     Nov 8, 2016
  3. sle

    sle

    That's when you partied too much over the holidays and the pants need to be expanded. Can be avoided, of course :)
     
    #13     Nov 8, 2016
  4. sle

    sle

    Well, think about it this way. If all you have is delta one products, you can do simple P&L predict using delta only and it would be good enough. If you have an options book, you can go further and predict p&l based on delta/gamma/vega, but if you want to can add other risk metrics (e.g. you might feel like adding dVega/dSpot and dGamma/dSpot if you have a lot of skew exposure) and make it more precise.
     
    #14     Nov 8, 2016
  5. Dgammadspt measure change of skew? But the amount is so small what about dgammadvol? Which measure measure the shift of skew?
     
    #15     Nov 9, 2016
  6. sle

    sle

    I was just giving an example that you can arbitrarily increase the precision of your prediction by adding more derivatives. Your mileage will vary greatly.
     
    #16     Nov 9, 2016