ThetaTactics

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Hi readers, I hope you are all doing well! In this post, I will be giving you a small piece of exposure to the Greeks of options. Understanding what the Greeks are will definitely help an options trader make great adjustments to positions, and understanding how the Greeks work together will result in an options trader being very fundamentally sound and very profitable. This is the first post in a 5-post series, where each post will cover one of the 5 Greeks of Options. Today's post will cover what Delta is, I hope you enjoy! First, here is some background on what Greeks are in Options trading. Greeks are simply types of risk measures that options have. Greeks also measure changes in options price, time value, volatility, and more in result of any change in the underlying stock.  The Greek we will cover today is called Delta. What is Delta? Delta measures how much the price of an option will change due to a $1 change in the underlying stock. The deltas for long call options and shor...

Hi Readers, I hope you are doing well! In this post, I will be covering what my account has been looking like over the past week. Since my positions did not change much over this past week, I will also include the market predictions for the next week in this post as well. I hope you enjoy! WEEKLY RECAP: Monday and Tuesday: I did not trade or make any adjustments on my account Wednesday: I entered a Long QQQ ATM Straddle 10 times in the April 5 expiration date. At the time of purchasing the spread, QQ was near $441, so I purchased the straddle at a $441 strike price. On Wednesday, QQQ was at its high for the day when I purchased the straddles, and for the rest of the day (after I purchased the straddles), QQQ proceeded to go down all the way to around $438, where it ended the day. So, the puts were most likely in the money then. Thursday: I did not trade or make any adjustments on my account. However, on this day, QQQ made a huge spike up, and ended the day at around $446.  Friday: ...

Hi Readers! This is the strategy post for this week, and in this post we will discuss short options. This is a heavy concept, so reviewing this post multiple times would be very beneficial. I hope you enjoy! Before you read this post, I recommend you briefly go over last week's post to re-familiarize yourself with how long options work. Understanding that will help you understand short options with ease. All long options are bought, so that means that someone is selling them. Just like we can buy options, we can also sell them, and that is called shorting options. When you short an option, you are selling it to someone who bought the exact same option. Remember how you pay a premium when you buy an option? Well, that premium goes to the person who sold the option, for both calls and puts. So, in this case, when you short an option, you are the one receiving the premium from whoever bought that option. So you actually get money up front when shorting options. But how do short option...

Hi readers! This is the Strategy post for this week! Today, I will be going more in-depth and explaining the difference between a call option and a put option. This post will cover just long calls and long puts, however, I will also talk about how options are low risk. I hope you enjoy learning about them! I highly suggest reading last week's strategy post to get familiar with the options trading lingo that traders use, so you can better understand the language in this week's post. A call option is an option that enables the holder to purchase the underlying stock at a pre-determined price, which is what we call the strike price. A call option is In the money (ITM) when the underlying stock is above the strike price. For example, if I bought a NKE call option at a strike price of $300, and if Nike goes to $320, then the call would be in the money, since 320>300. This would also make you a profit, because even though Nike is trading at $320, you have the right to buy it at $3...