1. Fundamentals of Call Options
Melting the snow We will assume once more, as we have with all of the prior Varsity courses, that you are unfamiliar with choices and, as such, know nothing about them. Because of this,.
2. Fundamental Option Terminologies
Interpreting Simple Jargon We were familiar with the fundamental call option structure from the previous chapter. The last chapter's goal was to summarise some key "Call Option" ideas, such as...
3. Purchasing a Call Right
Purchase of call options We examined the fundamental components of a call option and comprehended the general circumstances in which purchasing a call option makes sense in the preceding chapters.
4. Call Option Sales and Writing
Two sides of the same coin Do you recall the cult classic "Deewaar," a 1975 Bollywood blockbuster that became well-known for the iconic "Mere paas maa hai" line? The mo.
5. The Option to Put Purchasing
Correcting the orientation I hope you have a good understanding of the call option's realities from both the seller's and the buyer's point of view. If it is true that you are acquainted with the call,.
6. Selling put options
Assembling the Argument Previously, we believed that the buyer and the seller of an option were two sides of the same coin. They view markets in completely different ways.
7. Call and put option summaries
Recall these charts. The "call option" and the "put option" are the two fundamental option types that we have examined throughout the last few chapters. Additionally, we examined four distinct variants.
8. How Lucrative is an Option Contract?
Valuation Intrinsic An option contract's moneyness is a classification technique that assigns an In the Money (ITM), At the Money (ATM), or Out of Classification to each option (strike).
9. Part 1 of The Option Greeks (Delta)
Synopsis I watched "Piku," the newest Bollywood film, yesterday. Really excellent, I have to admit. I was idly thinking about what it was about Piku that really won me over after seeing the film.
10. Delta (Section 2)
Model-Based Thinking You got a preview of the first Greek choice, the Delta, in the last chapter. The preceding chapter had a secret goal in addition to talking about the delta: ...
11. Delta (Section 3)
Compute the deltas. One fascinating feature of the delta is that its values can be added up. Allow me to clarify; let's briefly revisit the Futures contract. We are aware of every.
12. Gamma (First Section)
The mountain's other side How many of you still remember math from high school? Do you recognise the terms differentiation and integration? The meaning of the word "derivatives" was different.
13. Part 2 of Gamma
The Curvature Since the delta of an option fluctuates in value in response to changes in the underlying, we can now say with certainty that it is a variable. Permit me to provide the Del graph again.
14.Theta
Money is nothing but time. Recall the proverb "time is money." It appears that this statement about time has a lot to do with options trading. For now, let aside all discussion of Greek; let's go on.
15. Fundamentals of Volatility
Overview Now that we have a solid understanding of delta, gamma, and theta, we are prepared to examine the Vega, one of the most fascinating option Greeks. As the majority of you may have surmised, Vega is the.
16. Historical Volatility Calculation
Using Excel to Calculate Volatility In the previous chapter, we discussed standard deviation and how it can be used to assess a stock's "risk or volatility." Prior to moving forward,.
17. The Normal Distribution and Volatility
Overview We talked about the range that Nifty is anticipated to trade in, given its annualised volatility, in the previous chapter. An upper and lower e were reached.
18. Applications of Volatility
Getting the shot right A rudimentary understanding of concepts such as volatility, standard deviation, normal distribution, etc. has been provided in the last several chapters. Now, let's put this knowledge to some useful use.
19. Vega
Types of Volatility We now have a basic understanding of volatility thanks to the previous several chapters. Now that we understand its meaning, we can compute it and apply the volatility.
20.Greek Conversations
Volatility Smile, In the last chapter, we took a quick look at inter-Greek interactions and how they affect the option premium. We should investigate this more in depth.
21.Greek Calculator
Overview We have covered all of the significant Option Greeks and their applications thus far in this module. It's time to learn how to use the Black & Sch formula to calculate these Greeks.
22. Call and put options are back in stock.
Why at this moment? I guess the title of this chapter would be unclear to you. What makes us return to "Call & Put Options" now that we have thoroughly covered the option concept over the course of the last 21 chapters?
23. Case studies: concluding remarks!
Studying Cases We have finally reached the end of the module, and hopefully it has provided you with a good knowledge of alternatives. As I indicated previously in the module, at this time I.
24. A brief on physical settlement
Synopsis In discussionIndia, cash settlement was the norm for trading equities, futures, and options until recently. This implies that purchasers or sellers were required to pay their purchase price at the conclusion of the deal.
25. M2M and P&L computation options
Returning to Futures Even though I'm adding a new chapter to this module after many years, it still seems like I built this options module yesterday. Many thousands of questions have been sent in.
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