Understanding the risks of shorting options and the importance of managing positions well for successful trading strategies.

Time value led drop in option premium is not a new thing to anyone. This is most popularly known as Theta Decay. Naturally Option Premium keep reducing in value with the passage of time. For an option ...

scalping is when you buy or sell shares of the underlying stock to take advantage of the daily price fluctuations. The profits gained from gamma scalping are used to cover for the theta decay on the ...

How fast am I driving? And, when I press the gas pedal, how quickly will I speed up? These questions help understand risk when trading options. That’s because “options are a multi-dimensional asset,” ...

Discover how Vega affects options pricing by measuring sensitivity to volatility changes. Learn its impact on trading strategies with clear examples and key takeaways.

Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big ...