If we trade the option in intraday trading, is the Greek an important view?
For me it is like asking do we need to know about gravity and laws of motion to eat the apple that fell from the tree.
Greeks are good for running a business around it. Greeks are good to sound like god. How much of an edge it gives to profitable trading is questionable.
Stick to the age old adage - “Bhav Bhagvan Che”. Simplicity trumps complexity in the market any day.
Start from 1:04:38 if you don’t wan’t to go through one hour + long tour.
Excellent video. Thank you for posting this.
Even a complete newbie like me could understand a lot of things.
Does a regional reason also exist for posting the video?
Just learning too many greeks at a time can give you a cognitive overload. Theta doesn’t matter as you are trading intra day.
Only thing matters is Delta only. Gamma hardly matters. If you are trading anywhere around ATM strikes just knowing delta is enough. Besides delta just says How much your option premium will + / - be when underlying future moves. That’s all you need to know.
For longer strikes vega does plays a part but for intraday you will mostly be near ATM strikes
See the ball, hit the ball if it’s cricket. Have pads, guards helmet on if you miss the ball.
See the price, trade the price in stock market. Have risk covered in case you get the price interpretation wrong.
Greeks will always be relevant in option trading, even if you play directional, IV crush or IV increase can give you losses even if market moves in your direction, if you buy options then you always have to vary about theta decay as well, so greeks are beneficial and will be helpful to you in long term, so i would advise to learn them.
greeks are measure not direction.
Have you quantified the accuracy of formulas used to calculate the measure ?
I can say about ATM as price movement is literally same as spot. So no change in gamma or vega. Even zerodha gave a webniar saying similarity between spot and ATM. However for overnight positions theta affects.
Well frankly speaking for intraday sticking around ATM strikes is best as they have the highest delta.
Thank everyone to teach this me…May God bless u
Why I asked this question, a trader booked 23 thousand 40 thousand daily profit, she is posting on twitter
She mentions the option that the Greeks play an important role when posting profits.
I thought, Greeks only matter if we hold out until the expiry
You really cleared my doubt
My question is Greeks are important in day trading
Ex Nifty Bank is now 37980
I decided to buy 350 premium at 38000 strike price
I thought the premium would move to 420
If the premium is reduced by 300 I will exit with SL
Premium exits with 420 I profit
I don’t think the Greeks are needed for this kind of trading
Well if you play in atm only and want to avoid greeks you can always trade in futures, its straightforward. Maybe position size will be less bt for new traders that’s a good thing.
They are leveraged products, one lot (size 50) of nifty futures requires around 2lakh margin.
If you buy a future and nifty moves 50 points up then your profit will be Rs2500 per lot same if it goes down 50 points your loss will be Rs2500.
You can both buy and sell futures.
If you doing ATM option buying then its better to do futures trading, you don’t need knowledge of greeks when trading in futures.
Thank u Anshul sir
No need for sir, i am not that old . Still learning, still improving.
Teach me who are good hearted people
I will always respect you
There is good and bad using ATM instead of future Intraday:
Good:- Delta makes sure whatever price movement made in spot or future , it is only 0.5 or 0.4 of it. Loss limited to option premium
Bad:- With same margin for future you can double or even quadruple the lots in ATM. People are more likely to lose money due to this. Also add exchange txn charge more for options than future.