How to practically use these Greeks for making better trading decision

General
1

how to practically use these Greeks in option trading for better trading decision

2

If you are talking about this post, Karthik will have a post soon explaining how to practically use the greeks. 

3

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.

4

Nice tutorial and article on investopedia

3 Likes
5

thank u nithin…

6

Sir really good work from entire team of zerodha.

7

Thanks loke. how can we trade options depends on volatility ? can you plz explain high VIX environment ? thanks in advance…

8

Hi Sai,
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.

9

Ajay why explain from outside when zerodha is explaining to customers from Indian perspective.