Tackle Today: The Options Heuristics Series – The Greeks
November 28, 2018
≈ Keep it in your pocket. ≈
We are back with our Options Heuristics Series.
To refresh your memory, the idea behind this series is “How can we explain the basics of Options so that our students can really learn, without getting confused with so many concepts, terminologies, and strategies?”
By definition, a heuristic is “an approach to problem-solving, learning, or discovery that employs a practical method, not guaranteed to be optimal, perfect, logical, or rational, but instead sufficient for reaching an immediate goal.”
We’ve released ten flashcards so far. Wanna download them? Access the OHS page HERE.The next flashcards will be focused on the Greeks.
The Greeks can be intimidating and it’s no wonder. They can free the wise and enslave the neophyte. Here we go:
Options Greeks: Options Greeks are a collection of statistical values that measure the sensitivity of the option price to a small change in a given underlying parameter.
In other words: if the price of the underlying security (stock, ETF, futures contract) changes, the Greeks change. If the perception of risk changes, the Greeks change. If the interest rate changes, the Greeks change.
The witchcraft that goes behind each one of the Greeks is irrelevant to us, in the sense that learning it won’t make us make any more money than not learning.
Stay tuned. The Greeks are coming to town.
Chart of the Day
THE GREEKS
Video of the Day
What are Options Greeks
The “Greeks” are a collection of statistical values that measure the risk involved in an options contract in relation to certain underlying variables.
Today’s Lineup
Traders Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show Replay
If you missed last night’s episode where Coach Noah Davidson and Coach Gino talk about adjustments to long calls or would like to watch it again, check it out here.
Mind of a Trader 8:30PM EST
Mind of a Trader is a special webinar series where our traders go over trades they are personally analyzing, their take on the current market conditions, strategies that they believe are effective in today’s market conditions and special lessons they believe are applicable to all traders.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
Trading Justice Podcast Episode 297: Making Money as Stocks Fall
The whole Trading Justice crew is back this week and we’re talking short selling. All too often traders and investors are under the impression that you can only buy stocks. Today coach Matt and Tim Justice dissect the idea of making money as stock prices fall.
