how to practically use these Greeks in option trading for better trading decision
If you are talking about this post, Karthik will have a post soon explaining how to practically use the greeks.
while we wait for Karthik’s post. I’ll pitch in my 2 Paisas (cents):
to me, the most important greek to watch out for is Volatility. Being a option seller, i’d prefer high VIX environment.
Nice tutorial and article on investopedia
thank u nithin…
Sir really good work from entire team of zerodha.
Thanks loke. how can we trade options depends on volatility ? can you plz explain high VIX environment ? thanks in advance…
As you are aware that high VIX = high premium & low VIX = low premium on options.
INDIAVIX these days is in the lower range of 13.50 to 15.00; very little volatility. this mean premiums on options are cheap(relatively); Being a option seller, i’d prefer VIX to be higher in the 20s range so that i get more premium for the options iam selling.
But this should not stop one from eating theta, (time value).
Hope Karthik’s post will throw more light on this issue.
Ajay why explain from outside when zerodha is explaining to customers from Indian perspective.