Tackle Today: Long Option Greeks
February 14, 2022
«Join me Tonight!»
Traders,
Coach Tyler here.
The day has finally arrived for our YouTube webinar on Swing Trading Options. I’m excited to have you join me tonight at 8:30 PM EST.
As a final topic to round out the past week of commentary, let’s look at the greek characteristics of buying calls and puts.
The greeks are variables used to measure risk. They help us know exactly how sensitive our positions are to changing market conditions (such as stock price, time, and volatility).
Let’s look at the Greeks for a long call option.
- Positive Delta (you profit as the stock rises)
- Negative Theta (you lose money as time passes)
- Positive Vega (you profit as implied volatility rises)
With this information, we can infer the ideal outcome for the call buyer. We want a big and quick rise in the stock and implied volatility. It’s uncommon to get all three simultaneously because implied vol doesn’t typically go up with the price. But, as long as it doesn’t go down too much, you’ll come out a winner.
Now, what of a long put?
- Negative Delta (you profit as the stock falls)
- Negative Theta (you lose money as time passes)
- Positive Vega (you profit as implied volatility rises)
The ideal scenario is a significant, fast drop in the stock and a jump in implied volatility. One nice thing about falling price is that it’s much more likely that implied vol rises.
🛑 Tonight’s Options Trading 101 Webinar: How to Swing Trade with Options with Coach Tyler Craig | February 14th, 2022 at 8:30 PM EST on YouTube
Join us to learn how to use two simple options trading strategies – the Long Call and Long Put – when Swing Trading. Traders use Technical Analysis in price charts to determine when to buy and sell. Many traders use the stock itself, but options are a great product to consider as well, as they bring leverage, complexity, more dynamic reward to risk ratios, and more.
In this webinar you will learn:
✅ What is Swing Trading
✅ How to use Technical Analysis to identify entry points
✅ What is a Long Call Option
✅ Long Call Risk Graph
✅ What is a Long Put Option
✅ Long Put Risk Graph
✅ How to Swing Trade with Options
Click on the button below to go to YouTube and set a reminder so you won’t miss it when Coach Tyler goes LIVE.
Video of the Day: Frank’s Charts: Hot Potential Swing Trading Setups On Stocks
Watch this clip where Coach Frank shares a few charts and discuss their potential #SwingTrading setups on #stocks $TWNK $BAC $BJ $SLB $CVK $STNE $PATH
Chart of the Day: VIX Spikes
Fear is in the air, and the VIX is pushing to 30. Remember, at 32, this volatility gauge is baking in 2% daily moves for the S&P 500. Prepare yourself accordingly.
Today’s line up
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