Delta hedging is a technique used by options and stock traders to reduce the directional risk of a position. The goal of delta hedging is to bring a position's delta closer to zero.
In this video, you'll learn:
1. What is delta hedging?
2. Trading strategies for hedging strategies with positive deltas
3. Trading strategies for hedging strategies with negative deltas
To support these points, you'll see real trading examples of the implementation of delta hedges:
1. Long puts against long shares of stock
2. Long calls against short shares of stock
==== Resources ====
Trade with tastyworks (& Get a Free Course):
https://www.projectoption.com/tastyworks/
Our Options Trading Courses:
https://www.projectoption.com/options-trading-courses/
==== Favorite Options Trading Books ====
Option Volatility and Pricing: https://amzn.to/2SU6f8K
How to Price & Trade Options: https://amzn.to/2FqsPmn

Views: 28970
projectoption

http://optionalpha.com - Because delta is a measure of the responsiveness for an option position to the underlying stock, traders have been carried away for years with the concept of delta neutral trading as a way to generate income while staying completely nondirectional.
And while we absolutely want to stay as neutral as possible I will help you understand why staying delta neutral all the time as a complete fantasy and unrealistic for retail traders. Plus, we'll show you how you can use beta to weight your deltas as a means to find appropriate hedges.
==================
Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast
==================
Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook
==================
Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04
==================
Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course
==================
Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here
==================
Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars
==================
- Kirk & The Option Alpha Team

Views: 17340
Option Alpha

When the market moves, so can our directional exposure through delta. In this segment, Mike breaks down how we use hedging to mitigate this directional exposure.
New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors.
Click the link below to learn more:
http://ow.ly/Y0nkQ
Follow:
@doughTraderMike
Use the hashtag #whiteboard to discover more options trading concepts!
======== tastytrade.com ========
Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU
Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1
Follow tastytrade:
Twitter: https://twitter.com/tastytrade
Facebook: https://www.facebook.com/tastytrade
LinkedIn: http://www.linkedin.com/company/tastytrade
Instagram: http://instagram.com/tastytrade
Pinterest: http://www.pinterest.com/tastytrade/

Views: 53455
tastytrade

Introduction to the binomial option pricing model, delta hedging, and risk-neutral valuation.

Views: 42445
Matt Brigida

http://optionalpha.com - Understanding Delta, Gamma, Theta, Vega for Options Trading
==================
Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast
==================
Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook
==================
Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04
==================
Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course
==================
Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here
==================
Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars
==================
- Kirk & The Option Alpha Team

Views: 137040
Option Alpha

Hindi presentation of option strategy using delta

Views: 18772
soumya ranjan panda

Option delta is the rate of change in the option premium w.r.t. change in the price or value of the underlying asset i.e. share price or index. For example, if the option delta of a stock is 0.2 then with every Rs 10 movement of the share, you will gain or lose Rs 2 per share. You can estimate your profit or loss with the help of option delta if you know the expected share price movement.
Delta of a call is +ve and put is -ve. The option delta of ITM or In the money contracts are high. Whereas it is low for out of the money contracts. For at the money contracts, the delta is 0.5.
Option delta also depends on the time till expiry i.e. for out of the money contracts will have near zero delta near expiry. With the increase in the volatility of the underlying asset, the delta decrease or vice versa.
In the case of 0.5 delta there is an equal probability of at the money contract to move in the money or out of the money. If the delta is 0 or 1, the probability of hitting that particular strike price is almost impossible.
For hedging, you need to check the option delta. It is wrong to assume that if the lot size is 100 and i bought same no of shares in cash then by buying one lot, i have fully hedged my position. You need to check net gain or loss based on delta to hedge a position.
To become a member/join, please click on following link
https://www.youtube.com/channel/UCqvVj1LkOpA8tjb7RadTvOg/join
If you liked this video, You can "Subscribe" to my YouTube Channel. The link is as follows
https://goo.gl/nsh0Oh
By subscribing, You can daily watch a new Educational and Informative video in your own Hindi language.
For more such interesting and informative content, join me at:
Website: http://www.nitinbhatia.in/
T: http://twitter.com/nitinbhatia121
G+: https://plus.google.com/+NitinBhatia
#NitinBhatia

Views: 25999
Nitin Bhatia

[my xls is here https://trtl.bz/2X8LpoV] To dynamically delta hedge is to rebalance the hedged position when the stock price moves (and therefore its delta moves, also). In this example, we rebalance once per week. We assume you are the market maker who writes (that is, sells) 100,000 call options where each option has a delta of 0.522. The initial position delta is therefore -100,000 * 0.522 = -52,000; as naked options you will lose 52,000 for each +$1.00 increase in the stock price. To delta hedge (aka, neutralize delta), you purchase 52,000. Then next week, you buy/sell shares to maintain delta neutrality, hence the "dynamic" aspect. If the realized volatility equals the implied volatility, then the cost of the hedge will approximately equal the option premium!

Views: 408
Bionic Turtle

Presented by Stan Freifeld, Director of Corporate Services and options mentor at McMillan Analysis Corporation
Trading Delta-neutral positions is a strategy professional and non-professional options traders use to increase their profits and reduce risk. It involves reducing or removing the position’s directional component so that profits can be made regardless of whether the underlying moves up or down. Stan Freifeld, Director of Corporate Services and options mentor at McMillan Analysis Corporation, discusses the advantages and disadvantages of Delta-neutral trading. He’ll show you how to create a Delta-neutral position and provide an example. A working knowledge of the Greeks is recommended but not required for this webinar.
Follow this link to see Important Disclosures:
https://www.tradestation.com/important-information/important-educational-disclosures/

Views: 5469
TradeStation

The Delta Hedging Framework is set out using the approach suggested by John C Hull' s text: Options, Futures and other Derivatives.

Views: 4988
Brian Byrne

[my xls is here https://trtl.bz/2O1OwKT] This market maker writes one call option (to the client) and hedges delta by purchasing Δ shares of the stock; this neutralizes delta but leave the market maker with a negative position gamma due to the short option position. The net profit, which is quantified in this video, on the position (i.e., short one call plus long one Δ share) is positive for short moves in the stock price but negative for large moves. There are four components to the market makers net gain/loss: interest received on cash from the short call, interest paid on the cash used to fund the purchase of the Δ share, positive theta (because time decay is a gain for the short option position!), and negative position gamma which overwhelms the other components as the magnitude of the stock movement (in either direction) increases.

Views: 329
Bionic Turtle

[my xls is here https://trtl.bz/2HjdxQq] To hedge options Greeks, we want to rely on the formula: +/- Quantity * %Greek = Position Greek, where a short position is represented by negative quantity. In this example, the market maker writes 10,000 ATM call options, each with percentage (per option) delta of 0.550 and gamma of 0.0440. This creates -10,000 * 0.550 = -5,500 position delta and -10,000 * 0.04400 = -440 position gamma. To neutralize (fully hedge) the gamma, the market maker buys OTM 12,055 call options, each with percentage delta of 0.270 and percentage gamma of 0.03650, which has position delta of 12,055 * 0.270 = +3,250 and position gamma of 12,055 * 0.03650 = +440. Due to -440 + 440, position gamma is now neutralized. However, position delta is -5,500 + 3,255 = -2,245 such that the market maker buys 2,245 shares (shares have 1.0 percentage delta and zero percentage gamma) and with that trade, both delta and gamma are neutralized.

Views: 339
Bionic Turtle

http://options-trading-mastery.com/delta-neutral-trading.html
for the full article and other great options strategies.
Once you understand how delta neutral trading really works, you can use it to profit from options in a variety of ways. In this video we discuss some of them.

Views: 24289
Owen Trimball

A brief introduction to the Delta Neutral Hedging

Views: 36207
Friendly Finance with Chandra S. Bhatnagar

Black-Scholes Option Greeks and Delta Hedging Strategies and simulation.

Views: 5366
Lou Gattis

Delta neutral option strategies are essentially volatility trades.
In a short volatility example, traders want to maximize their time decay whilst simultaneously delta hedging to keep their directional exposure in check.
By doing this, theta and vega become the big drivers in the position rather than delta.
In this example, I'll look at a short straddle trade on PM with weekly delta hedging. Hope you enjoy the video.
If you want to learn more about this strategy head to www.optionstradingiq.com
Thanks for watching!
You can also follow me on Twitter - https://twitter.com/OptiontradinIQ

Views: 1322
Options Trading IQ

Buying index options or VIX options are cost-effective methods for insuring your portfolio against downside risk, says option trader Larry McMillan, who shares tips for choosing the right option to buy.
https://www.moneyshow.com

Views: 8883
MoneyShow

Gamma is the rate of change of an option's delta, given a $1.00 move in the underlying. In other words, this is the acceleration of an option's delta. Our main concern with gamma is the risk it can carry as we approach expiration. Mike breaks down an example in this segment, and explains why we look to close or roll our trades before we get to this point!
New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors.
Click the link below to learn more:
http://ow.ly/XROgU
Follow:
@doughTraderMike
Use the hashtag #whiteboard to discover more options trading concepts!
======== tastytrade.com ========
Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU
Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1
Follow tastytrade:
Twitter: https://twitter.com/tastytrade
Facebook: https://www.facebook.com/tastytrade
LinkedIn: http://www.linkedin.com/company/tastytrade
Instagram: http://instagram.com/tastytrade
Pinterest: http://www.pinterest.com/tastytrade/

Views: 32687
tastytrade

www.investmentlens.com
We describe the delta hedging approach to price an option using a one period binomial tree model. The approach can be easily extended to price derivatives in multi-period setting.

Views: 14507
finCampus Lecture Hall

The delta of an option can be used to gauge the directional risk or exposure of an option relative to changes in the stock price.
In this video, you'll learn about the delta of an option through examples using real option data. More specifically, we'll talk about:
1. How an option's delta represents the option's expected price change relative to $1 changes in the stock price.
2. The difference between call and put option deltas.
3. How to use delta to gauge an option's directional risk exposure
4. The relationship between an option's strike price and delta.
==== RESOURCES ====
Trade with tastyworks (& Get a Free Course):
https://www.projectoption.com/tastyworks/
Our Options Trading Courses:
https://www.projectoption.com/options-trading-courses/
==== FAVORITE OPTIONS TRADING BOOKS ====
How to Price & Trade Options: https://amzn.to/2FqsPmn
Option Volatility and Pricing: https://amzn.to/2SU6f8K

Views: 13379
projectoption

Learn about buying and selling shares in order to stay delta neutral.

Views: 12783
InvestorPlace

There is a clear relationship between delta & vega when it comes to put options specifically. They work together to speed up our profits, but this also have the opposite effect of speeding up our losses! @doughTraderMike walks through this relationship in this segment!
New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors.
Click the link below to learn more:
http://ow.ly/10D3fB
Follow:
@doughTraderMike
Use the hashtag #whiteboard to discover more options trading concepts!
======== tastytrade.com ========
Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU
Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1
Follow tastytrade:
Twitter: https://twitter.com/tastytrade
Facebook: https://www.facebook.com/tastytrade
LinkedIn: http://www.linkedin.com/company/tastytrade
Instagram: http://instagram.com/tastytrade
Pinterest: http://www.pinterest.com/tastytrade/

Views: 10572
tastytrade

Trading strategy: Buying put options as an insurance policy. http://www.financial-spread-betting.com/ PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Buying a put as insurance. Buying the put option and buying the stock...let's see what the payoff is for different price points at expiry. Once thing we can do with buying options is to use it in conjunction with buying a stock or shorting a stock. In this example I'm going to explain some of the scenarios that could happen if we bought a stock and a put as an insurance policy.
Protective Put Strategy: Hedging Strategy
XYZ stock is trading at $50
A put option with a $50 strike that costs us $10.
If the stock price is $0 on expiry our put option is worth $50 (ignoring what we have paid for now) because on expiry we have the right to sell the contract at $50
If the stock price is $10 on expiry our put option is worth $40
..etc
If the stock price is $60 on expiry our put option is worthless.
Now let's analyse the overall effect on our stock and option positions if we held back. Your downside is always limited to the put premium you paid. So If you believe that a stock is highly volatile and carries big downside risks yet also has big upside potential you could buy the stock and put option together. The put limits your downside to the premium you paid. Prices Plunging? Buy A Put!
Complete Options Trading Course
Check the rest of the videos on our Options Trading videos playlist at
https://www.youtube.com/watch?v=43bk2a6CPr8&list=PLnSelbHUB6GQJHlFjss97-zlhYi_ndq9K

Views: 2378
UKspreadbetting

New to options? Check out our options introduction course: http://www.informedtrades.com/f115/
Practice trading options with a free options trading demo account: http://bit.ly/apextrader
VIDEO NOTES
This is the 12th in an ongoing series on Basic Options. In this video, we will look closer at Delta
In the last video, I mentioned that the Delta is the rate of change in an option's value when there is a change in the price of the underlying stock. More formally, it is the rate of change in an option's value with respect to changes in price of the underlying stock.
This is a little bit of an over simplification, but a simple way of thinking of it is- when the price of the stock changes one dollar, the Delta is the percent of $1 that the option will change in value.
For instance, if a Call Option has a delta of 0.6, and the stock increases $1 in value, then the Option will increase 60 cents in value. If a Call Option has a Delta of 0.4, and the stock increases $1 in value, then the option will increase 40 cents in value.
If a Put Option has a Delta of -0.3, and the stock decreases $1 in value, then the Put Option will increase 30 cents in value. If a Put Option has a Delta of -0.7, and the stock decreases $1 in value, then the Put Option will increase 70 cents in value.
I also mentioned in the last video, that the Delta is the Hedge ratio.
Let's look at an example. Let's say that a trader has 300 shares of stock, and he is worried that the price of the stock may drop. Therefore, the trader buys 5 Put Options that have a delta of -0.6. At this point, he is Delta Hedged. In other words, if the price of the stock drops $1, his 300 shares of stock drop a total of $300 in value. However, the Delta of -0.6 means that, for each $1 drop in the price of the stock, each Put Option Contract increases 60% of $100 or $60. The trader owns 5 Puts, so his stock decreased in value $300, but his Put Options increased $300 total.
In other words, the option contracts increased in value the exact same amount that the stock decreased in value, so the trader was hedged against loss.
If you remember from my last video, once the price of the stock does change, the Delta changes as well. As a stock goes up and down in value, the Delta increases and decreases.
This means that once the stock price moves, a once hedged position is no longer completely hedged. To maintain a hedge, the ratio of option contracts to shares of stock must be readjusted by increasing or decreasing the amount of shares of stock or option contracts so that the hedge ratio is once again balanced.
Delta Hedging was one of the keys to the Black Scholes formula. The theory was that if one could theoretically continue to keep readjusting the ratio of option contracts to shares of stock on a continuous basis, then one could be constantly hedged and theoretically remove all risk of loss. Therefore, if that is true, then a bunch of theories must apply, or one can place offsetting trades and make more money than one can make on a risk free investment such as a US Government Bond without risk of loss.
Delta Hedging must be adjusted for more than just the changes in the price of the stock as the Delta also changes when there is a change in volatility, Interest Rates, or the time left until the option expires.
Trading a hedged position is called Delta Neutral trading, and will be the subject of a later video.
An option's Delta is derived using probability. I mentioned in the first video that one can create a probability or odds curve of what the future value of the stock will be. For a Call Option, the Delta is derived from the a probability distribution of what the future value of the stock will be, multiplied by the probability that the stock will be above the option strike price. Put another way- If and only if the Option expires in the money, the Delta is a probability distribution of how far into the money the option will be.
So that a bit more on an option's Delta. In the next video, we will compare buying a call option to selling a put option. I hope you enjoyed this video. Thanks for watching.
Cheers
Tek

Views: 12657
InformedTrades

Delta is the rate of change of an option's price, given a $1.00 move in the underlying. In other words, this is the traction an option has when it comes to changes in the underlying's price. Delta can be positive or negative, depending on what option we are buying or selling. Tune in to learn the big factors of delta that we pay attention to, and how to apply it to options trading!
New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors.
Click the link below to learn more:
http://ow.ly/XRNPP
Follow:
@doughTraderMike
Use the hashtag #whiteboard to discover more options trading concepts!
======== tastytrade.com ========
Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU
Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1
Follow tastytrade:
Twitter: https://twitter.com/tastytrade
Facebook: https://www.facebook.com/tastytrade
LinkedIn: http://www.linkedin.com/company/tastytrade
Instagram: http://instagram.com/tastytrade
Pinterest: http://www.pinterest.com/tastytrade/

Views: 47943
tastytrade

Delta is not constant. Gamma gives the rate of change of delta (i.e., delta is first derivatives, and Gamma is second derivative). A delta-neutral portfolio is only temporarily (instantaneously) hedged. For more financial risk videos, visit our website! http://www.bionicturtle.com

Views: 28583
Bionic Turtle

Today's demo trade video is to show the option strategy where option hedging method is used and described how to trade in any market condition with minimum loss and maximum profit.
#options #trading #strategy
Futures and options hedging strategy
for intraday trading (Risk Free)
https://www.thenexttrade.com/options-strategy
Subscribe to Channel
https://goo.gl/UXIAQP
https://www.facebook.com/Intradaytradingstrategiesindia
-~-~~-~~~-~~-~-
Please watch: "Goodwill commodities trading account "
https://www.youtube.com/watch?v=65m25J69h5Y
-~-~~-~~~-~~-~-

Views: 4766
Intraday Trading Strategies India

Delta Hedging is implemented using the approach suggested by John Hull in his book: Options, Futures and Other Derivatives. I also make use of random numbers generation in which I follow Simon Benninga from his book Financial Modelling. Espen Haug's book Option Pricing Formulas provides a good overview of Monte Carlo.

Views: 3123
Brian Byrne

ZERO RISK OPTION STRATEGY
MAX LOSS - ZERO
MAX PROFIT - RS. 16000
Futures and options hedging strategy
for intraday trading (Risk Free)
https://www.thenexttrade.com/options-strategy
Options Trading Videos
https://www.youtube.com/playlist?list=PL0ITu5YXje8ksPtWzxAnGkE6TuwONVc_q
Subscribe to Channel
https://goo.gl/UXIAQP
-~-~~-~~~-~~-~-
Please watch: "Goodwill commodities trading account "
https://www.youtube.com/watch?v=65m25J69h5Y
-~-~~-~~~-~~-~-

Views: 23949
Intraday Trading Strategies India

This video is a strategy which I am still experimenting using futures and options for hedging. I have picked Sunpharma and Tata steel stock futures and has given a decent profit. I would have made more profit had I not exited sooner.
Anyways lets not be too greedy.
I will keep you guys posted and thank you for watching.
Please give me your feedback.
P.S - I do not use Zerodha for intraday and use it generally for swing trading.

Views: 942
Trade for a living

http://optionalpha.com/show55 - Market neutral, delta neutral, or balanced portfolio; call it what you want but the concept of making money regardless of where the stock market goes has been a long-time goal for many traders. But what happens when your portfolio becomes unbalanced? What are the best hedging strategies you can use to get back to a neutral stance?
In today’s show, I'll walk through three different portfolio scenarios and offer my advice on the best hedging strategies to use to help re-balance your positions. You'll hear which options strategies to use if you're too bullish, too bearish or completely lopsided. Plus, I'll help you learn how to hedge stocks that don't have tradable option contracts.
Of course, it all starts with a solid understanding of how to determine what your portfolio looks like on either a beta-weighted or delta-weighted basis. It's enough anymore to just have a couple of bearish trades and a couple of bullish trades. You have to determine what the net impact of each position is in the overall portfolio. If you can do that, you'll be well on your way to consistently generating income with options regardless of the market direction.
And as always, if you've got questions on portfolio management or hedging trades, add them in the comments section below, and I'll make sure to reply personally to every single one.
==================
Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast
==================
Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook
==================
Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha.com/7steps
==================
Have more questions? We've put together more than 114+ Questions and detailed Answers taken from our community over the last 8 years into 1 huge "Answer Vault". Download your copy here: http://optionalpha.com/answers
==================
Just getting started or new to options trading? You'll love our free membership with hours of video training and courses. Grab your spot here: http://optionalpha.com/free-membership
==================
Register for one of our 5-star reviewed webinars where we take you through actionable trading strategies and real-time examples: http://optionalpha.com/webinars
==================
- Kirk & The Option Alpha Team

Views: 2107
Option Alpha

In this video, I go over Delta Hedging technique and show how to buy an out of the money option as a hedge to remove NET delta exposure.
30 Day Trial - https://mrtoptick.com/income-navigator-1-trial/

Views: 636
Mr.TopTick

Views: 224
shivakumar mcse

Please watch: "Nifty options Trading profit 24,100 live - Sharmastocks.com"
https://www.youtube.com/watch?v=QnETKZsDlcY --~--
To know more about our Zero Brokerage plans, please call us on +91-7067446768
------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Open account with us zerodha :-
http://www.sharmastocks.com/Web/openZerodhaAccount
--------------------------------------------------------------------------------
Open account with us Upstox-
http://www.sharmastocks.com/Web/OpenUpStoxAccount
-----------------------------------------------------------------------------------------------------
Open account with us Trading bells:-
https://goo.gl/forms/xa3Yb8ycxqJxb6wd2
---------------------------------------------------------------------------------
FACEBOOK LINK...
https://www.facebook.com/sharmastocks/
----------------------------------------------------------------------------------
EMAIL :- [email protected]
----------------------------------------------------------------------
telegram :- https://t.me/joinchat/AAAAAEHsIa7ax6_Sgs81Rw
----------------------------------------------------------------------------------------------------

Views: 35754
Abhishek Sharma Sharmastocks

http://optionalpha.com - Option traders often refer to the delta, gamma, vega and theta of their option position as the "Greek" which provide a way to measure the sensitivity of an option's price. However, it's important that you realize that the "Greeks" don't determine pricing, just reflect what could happen in pricing changes for moves in the stock, implied volatility, etc.
==================
Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast
==================
Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook
==================
Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha.com/7steps
==================
Have more questions? We've put together more than 114+ Questions and detailed Answers taken from our community over the last 8 years into 1 huge "Answer Vault". Download your copy here: http://optionalpha.com/answers
==================
Just getting started or new to options trading? You'll love our free membership with hours of video training and courses. Grab your spot here: http://optionalpha.com/free-membership
==================
Register for one of our 5-star reviewed webinars where we take you through actionable trading strategies and real-time examples: http://optionalpha.com/webinars
==================
- Kirk & The Option Alpha Team

Views: 165077
Option Alpha

Today's demo trade video is to show the option strategy where option hedging method is used and described how to trade in any market condition with minimum loss and maximum profit.
#options #trading #strategy
Futures and options hedging strategy
for intraday trading (Risk Free)
https://www.thenexttrade.com/options-strategy
Subscribe to Channel
https://goo.gl/UXIAQP
https://www.facebook.com/Intradaytradingstrategiesindia
-~-~~-~~~-~~-~-
Please watch: "Goodwill commodities trading account "
https://www.youtube.com/watch?v=65m25J69h5Y
-~-~~-~~~-~~-~-

Views: 2251
Intraday Trading Strategies India

Hedging Strategies with Options and Futures are important for risk management. It helps to execute zero loss trading strategy by professional traders. For a retail investor, it is mandatory to understand the concept of hedging.
In layman terms, hedging is a position opposite to existing position. It is sort of insurance cover to protect loss in existing position. Derivatives like futures and options are basically hedging tools. However, over a period of time, they are used as trading tools.
Hedging with options is a simple strategy to take buy or sell position in cash or futures and to buy corresponding put or call option to hedge the existing position. For perfect hedging, you buy or sell the same quantity equivalent to the lot size i.e. qty of existing position should be equal to the qty of hedging position.
In layman terms, the value of an existing position is inversely proportional to the value of the hedge position.
To hedge the portfolio, you can also consider the beta value of the stocks. Here the value of the portfolio decides the no of index futures contracts. The cost of hedging depends on the premium and may vary.
Hedging is used in the commodities and currency or forex market by the corporates or companies to hedge their position against any future fluctuation in the commodity or currency movement. This is important for export or import oriented companies.
If you liked this video, You can "Subscribe" to my YouTube Channel. The link is as follows
https://goo.gl/nsh0Oh
By subscribing, You can daily watch a new Educational and Informative video in your own Hindi language.
For more such interesting and informative content, join me at:
Website: http://www.nitinbhatia.in/
T: http://twitter.com/nitinbhatia121
G+: https://plus.google.com/+NitinBhatia #NitinBhatia

Views: 48728
Nitin Bhatia

I Recently started trading in Bank Nifty, This is highly volatile to trade and create more opportunities for consistent profits,
Watch the complete video series about technical analysis to understand basics of options trading with case studies!
Learn How to trade options with technical analysis!
Part 1: https://www.youtube.com/watch?v=jqptUuz_akk
Part 2: https://www.youtube.com/watch?v=q5OSg6N2eLA&feature=youtu.be
Part 3: https://www.youtube.com/watch?v=_OzMlnyzajg&feature=youtu.be
We teach everything you need to know about the Options trading in Indian market and how to make money online from anywhere in the world.
Website link: http://tradepsychology.com
Want to learn How to trade options from scratch, Register in the below link to get free course content!
Free Nifty course link: http://www.tradepsychology.com/course-details/
Getting started:
Open a free trading account from ZERODHA India's no. 1 Trading platform
Click here: http://www.tradepsychology.com/open-an-account/
Helpful Blogs/Links:
Trading psychology blog: http://www.tradepsychology.com/blog/
Thanks for watching, Watch my daily Updates on Nifty intraday trading levels for learning better edge for generating consistent profits.
Subscribe for more Updates,
Also don't forget to register to my 3 months free training course on ''How to trade Options Intraday for consistent profits."'
Thanks Again

Views: 56541
Options Trader

For more videos, notes, practice questions, mock exams and more visit: http://www.ift.world/inbound-signup
Facebook: facebook.com/Pass.with.IFT

Views: 3256
IFT

Basics of Options Trading, Options, Options Trading For Beginners India, Options Trading Strategies India, Options Trading Strategies India in Hindi, Options Trading Basics India, Options Trading Tutorial, Options Trading For Beginners, Options Trading, Futures and Options Basics India

Views: 45888
ICFM

http://optionalpha.com - Hedging and adjusting options trades that move against you is important, but frankly it's not as important as entering the right trade with the right strategy in the first place. In this quick video, we'll prove why correctly entering a trade is 100X more important than adjusting one.
==================
Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast
==================
Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook
==================
Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha.com/7steps
==================
Have more questions? We've put together more than 114+ Questions and detailed Answers taken from our community over the last 8 years into 1 huge "Answer Vault". Download your copy here: http://optionalpha.com/answers
==================
Just getting started or new to options trading? You'll love our free membership with hours of video training and courses. Grab your spot here: http://optionalpha.com/free-membership
==================
Register for one of our 5-star reviewed webinars where we take you through actionable trading strategies and real-time examples: http://optionalpha.com/webinars
==================
- Kirk & The Option Alpha Team

Views: 16365
Option Alpha

Selling premium naturally exposes us to short vega. Regardless of whether our strategies are bullish, bearish or neutral, if we sell premium we are short vega. Having a slight short delta can help us mitigate this implied volatility risk. Tune in to learn more!
New to options trading? Mike breaks down trading strategies and concepts in a visual way for beginner to intermediate investors.
Follow:
@tastytradermike
======== tastytrade.com ========
tastytrade is a real financial network, producing 8 hours of live programming every weekday, Monday - Friday. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 50 original segments, and over 20 personalities, we’ll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. http://ow.ly/EbzUU
Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1
Follow tastytrade:
Twitter: https://twitter.com/tastytrade
Facebook: https://www.facebook.com/tastytrade
LinkedIn: http://www.linkedin.com/company/tastytrade
Instagram: http://instagram.com/tastytrade

Views: 3013
tastytrade

Understanding and Trading Delta Neutral Strategies
Presented by Stan Freifeld, Director of Corporate Services, McMillan Analysis Corp.
A delta neutral position is intended to remove the directional component from a position. The trader does not attempt to predict the direction of the underlying stock, but seeks to benefit from the interaction of stock price and options values. This strategy is used by both professional and non-professional traders.
Stan Freifeld will provide a definition and examine the possible advantages of making a position delta neutral. He'll show you how to put on a delta neutral position, provide some examples, and answer questions. Since you'll need a working knowledge of the Greeks, Stan will provide a brief explanation of them as well.

Views: 24625
TradeStation

In this video, Gail shows you how to hedge a position using binary options when trading forex, futures or commodities.

Views: 2556
Gail Mercer

Binary options - the best investment in your future! Faster and easier than Forex! Says the course and give yourself up to 92% profit.! SIGN UP HERE /http://binaryschreiben.blogspot.com/ ...............................................................................................................................................................................................
binary options trading signals live Day Trading (Literature Subject) binary options trading signals Portfolio Manager (Industry) how to trade binary options Risk Management (Industry) Trade (Organization Type) binary options trading binary options scam banc de binary scam binary option forex best way to invest binaryoptionsexperts forex binary option start making money How to make money make money online option strategies 60 secounds scam currency trading Delta Neutral stock market futures trading Online gambling 24option review the green room options trading options trader binary trading stock trading optionbit scam Binary options forex trading binary options binary option 24option binary forex scam investment currencies dow jones Finances stock trades Hedge Stock forex

Views: 240
Binärdateien

Training on Hedging with Futures and Options by Vamsidhar Ambatipudi

Views: 2690
Vamsidhar Ambatipudi

http://optionalpha.com - Been looking for a simple way to hedge a call credit spread? In today's video recap we'll walk through the process we used to hedge our BABA call credit spread by selling a corresponding put spread and turning our position into a less risky trade overall.
==================
Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast
==================
Download your free copy of the "The Ultimate Options Strategy Guide" including the top 18 strategies we use each month to generate consistent income: http://optionalpha.com/ebook
==================
Grab your free "7-Step Entry Checklist" PDF download today. Our step-by-step guide of the top things you need to check before making your next option trade: http://optionalpha.com/7steps
==================
Have more questions? We've put together more than 114+ Questions and detailed Answers taken from our community over the last 8 years into 1 huge "Answer Vault". Download your copy here: http://optionalpha.com/answers
==================
Just getting started or new to options trading? You'll love our free membership with hours of video training and courses. Grab your spot here: http://optionalpha.com/free-membership
==================
Register for one of our 5-star reviewed webinars where we take you through actionable trading strategies and real-time examples: http://optionalpha.com/webinars
==================
- Kirk & The Option Alpha Team

Views: 1570
Option Alpha

New to options? Check out our options introduction course: http://www.informedtrades.com/f115/
Practice trading options with a free options trading demo account: http://bit.ly/apextrader
VIDEO NOTES
Hello and welcome.
In this video, we will take our first look at the option Greeks.
You may remember from my videos on option pricing that there are only 5 inputs to the price of an option, or 6 if the option pays a dividend. The Strike price is fixed, but the price of the underlying stock, the volatility, and the time left until the option expires are constantly changing, and interest rates can change at any time.
Option Greeks isolate these inputs and look at the change in option value when one or more of these inputs change.
There are 5 main option Greeks- Delta, Gamma, Vega, Theta, and Rho, plus a bunch of others that are lessor known.
Delta is the rate of change in an option's price when there is a change in the value of the underlying stock.
Call Options have positive Delta, between 0 and 1. Put Options have a negative Delta between 0 and -1. When a stock changes price $1, one can think of the Delta as the percentage of the $1 that the option will change in value. For instance, if a Call Option that has a Delta of 0.5, and the underlying stock moves $1, then the value of the option will move 50 cents. A Delta of 1 means that the value of a Call Option is moving dollar for dollar with the underlying stock, and a Delta of 0 means that the value of the option does not move at all when the underlying stock changes value.
Delta is the hedge ratio. A single option contract locks in a buy or sell price for 100 shares of stock. A Delta of 0.5 means that 50 shares of stock can be hedged with a single option contract.
The Delta tells us how much the option will change in value when the price of the underlying stock changes. However, once the price of the underlying stock does change, the Delta changes as well. As the price of the stock moves up and down, the Delta also moves up and down. As an option gets further in-the-money, the option's Delta increases. As an option gets further out-of-the-money, the option's Delta decreases. The rate of change in the Delta when the price of the stock changes is known as Gamma.
So the Delta shows how much the option will change in value when the stock changes value, and the Gamma shows how much the Delta will change when the stock changes value.
In addition to the Delta changing, when the price of the underlying stock changes, the Gamma as well. The rate of change in Gamma when the price of the stock changes is known as Speed.
Delta and Gamma also change over time as the option moves closer to expiration.
As an in-the-money call option nears expiration, it will approach a Delta of 1.00, and as an In-the-money put option nears expiration, it will approach a Delta of -1.00. As out of the money Calls and Puts approach expiration, they will approach a Delta of 0. The change in the Delta over time is known as Charm or Delta Decay.
Gamma also changes over time as the option moves closer to expiration. The change in the Gamma over time is known as Color or Gamma Decay. When an option nears expiration, Color may change quickly.
------
Vega is the rate of change in an option's price when there is a change in the volatility of the underlying stock. When volatility increases, then the cost of the option increases, and when volatility decreases, then the cost of the option decreases.
The amount that the change in volatility affects an options price varies depending on the Strike Price. Changes in volatility have the most effect on an option's price when the option is at the money. In other words, volatility has the most effect when the Strike Price is the same as the current price of the stock.
---
Theta is the rate of change in an options value when there is a change in the time left until the option expires. As the option moves closer and closer to expiring, there is less time left for the option to possibly move to where the option is profitable. This causes the option to lose value due to time decay. The rate of time decay on an option's value is not linear. As an option gets closer to expiring, time decay speeds up
For instance, an option that expires in 9 months will lose just 10% of its value from time decay the first 3 months. The second 3 months that triples to losing 30% of its original value, and the final 3 months it loses 60%.
---
Rho is the rate of change in the value of the option when interest rates change. Rho is the amount an option will change in value if there is a 1% change in the risk free rate. The most commonly used rate for the Risk Free Rate is the US 10 Year Treasury Rate. When there is a change in interest rates, it means there is a change in the time value of money.
So that is a basic introduction to the option Greeks. In the next video, we will continue looking at Delta.
I hope you enjoyed this video. Thanks for watching.

Views: 9139
InformedTrades

Option gamma indicates how an option position's delta will change as the stock price changes.
In this video, you'll learn:
1. What is long/positive gamma?
2. What is short/negative gamma?
3. What does long gamma tell you about long calls and long puts?
4. What does short gamma tell you about short calls and short puts?
To support these points, you'll see visual examples of long and short gamma applied to real call and put options:
1. How long call and long put deltas change relative to the stock price (as a function of their positive gamma)
2. How short call and short put deltas change relative to the stock price (as a function of their negative gamma)
==== RESOURCES ====
Trade with tastyworks (& Get a Free Course):
https://www.projectoption.com/tastyworks/
Our Options Trading Courses:
https://www.projectoption.com/options-trading-courses/
==== FAVORITE OPTIONS TRADING BOOKS ====
How to Price & Trade Options: https://amzn.to/2FqsPmn
Option Volatility and Pricing: https://amzn.to/2SU6f8K

Views: 7658
projectoption