How to Measure Price Movement When Trading Options

When trading options, there are several factors that affect price - not just the value of the underlying asset. The variables that exist that account for the fluctuations of an option's price movement are known as the options "Greeks," and we've covered many of these. I've told you that delta - how an option's price will move with price movements in the underlying - is the single most important factor in determining an option's price. Today's "Greek" shares a special relationship with the delta. I like to call it the "delta accelerator." Here's what I'm talking about... Tags: how to trade options , options trade , options trading , trading options. , trading strategies To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post How to Measure Price Movement When Trading Options appeared first on Money Morning - We Make Investing Profitable .
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