If you guys have already come to this video, then I don’t need to tell you how valuable this video is for you. If you guys have started trading in options and have decided that we should trade in options, then you cannot ignore the option Greeks. What are these option Greeks? You might be confused. Today if you watch this video, it will look very easy. But why is it important to understand it? If you are going to trade by investing your hard earned money, then if you are going to trade by investing your money and your money depends on something, which is these option Greeks, then why should you ignore them completely? Today in this video we will understand the option Greeks in a very simple language and I am telling you that once you understand it, you will not forget it. Secondly, to understand these Greeks I will take simple questions which are your own questions and if you know their answers, then it is okay. And if you don’t know, then it is okay. So watch the video till the end because I am going to answer these questions which are your own questions. Now what is the question? I will take some questions one by one. The first question is that our first question is what many people do. They trade in options. They buy options. So we are talking about weekly expiry on Friday. When Nifty was at 18000, someone bought a call option of D Mani at 18000. My question is listen to the question very carefully. Nifty was at 18000 and D Mani bought a call option of 18000 which was at 18000. For example, it is at 18000. So he paid 200*50 for one lot. You understand here that he paid 10 thousand rupees and now how much did it become? 160*50 ₹8000
Loss happened
Why did the loss of 2000 happen
Brother
Question number one
If you don’t know the answer, then I will tell you
I will make all the concepts clear
My second question is
Okay, on Friday
The person bought a call option of 18000. Nifty was at 18000.
Now Nifty moves on the same day.
Nifty moves from 18000 to 18100. He bought a call option of ₹200.
You have to tell how much this premium of 200 will become now
If Nifty moves 100 points, will the premium also increase with the increase?
How much will it increase?
This is my second question.
Do you know the answer to this?
Okay, now I will ask the third question. You may say
I am asking a lot of questions, but this is important only for you. So I am asking the method
The question is very simple
On Friday Nifty was at 18000
For example you bought a call option of 18000
Your friend said no, I am at 16000
You go to option selection and see you will see everything
I will buy a call option of Rs 16000 which is running at 2000
Now I have to buy an option of Rs 2200
I will buy this option which is running at Rs 2200
Still Nifty removes 100 points
Nifty removes 100 points from 18000 and goes to 18100
But which call option was bought at 16000
For which I paid 2200
So now you have to tell
How much will the premium of 2200 increase if it increases by 100% it will be a big deal, you know, Fed meetings For example, interest rates are changing, elections are happening, a lot of things keep happening in the market, for example, can you tell me if something happens that wallets are being revalued in the market, and that makes a difference in the price of options? Well, I have answered you, but I will still ask you one more question. For example, you bought a call option of ₹200 on Friday, at 9:00 am, you bought a call option at 9:15 am, at 9:15 am you bought a put option of ₹200. Now what happens is, the market is at 18000, normally you will see it will go below ₹200, it will go to 190, it will go to 195, it will go down a little bit during the day, but you see friend
200 became 220 directly
Nifty did not increase without doing anything
How did your money increase how did this happen the first thing
So does this happen and if it happens then
Why does this happen if you do not know the answer to these four concepts then now I will answer one by one and you will understand
Now I will start my first
Question I will stick to the question on Friday
If you want to buy a call option say 18000
If you want to buy a call option it is for ₹200
Its price is ₹10000 but on Monday it becomes 160
If Nifty does not move
It remains at 18000
If it If it remains at 18000 then on Thursday
Expiry is on Thursday weekly expiry
That 10000 will become zero completely
This 10000 rupees you have bought 18 year call option Nifty did not move, it is still at 18000, forget about falling down, your money became zero. This happens because from here first of all your option falls, which we call number van theta. Theta means time value or given time. You should understand the time value.