Options: prices, volatility and management

In this videolesson we learn the Greek and examine their main characteristics. They are nothing more than simple numerical values ​​that explain how the price of the option changes in relation to its determinants: underlying, expiry, volatility.

In this video lesson we learn about moneyness, or the relationship between the price of the underlying and the strike of the option. We also analyze the effect of the Greeks on the option price as a function of moneyness.

We delve into the components of the option price by taking a look at the Black and Sholes formula and focus in particular on implied volatility, both priced by the market on the single option and on the entire chain, and examine the volatility skew.

Let’s examine the concept of put and call parity and how this can come in handy when we want to enter the market. We split the future into calls and puts and appreciate the equivalence and reciprocity of the market-priced up and down probabilities.

Money management and psychology are much more important than identifying a good market entry or exit. In this lesson we dispel a few myths.