The Greeks, as they're known to options traders, are the four main factors that influence options pricing. They're used to predict options price movements.
Sometimes, the answer lies in gamma exposure — the way options positioning forces market makers to hedge. Gamma Exposure: The ...
Gamma hedging is a trading strategy that tries to maintain a constant delta in an options position, often one that is delta-neutral, as the underlying asset changes price. It is used to reduce the ...
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big ...