Irish 0 Report post Posted January 17, 2018 Reading Kim’s article on Greeks. Using this example, can someone pls explain why a 5% change in the stock price (in either direction) will produce a ~25% gain? I get the other Greeks decently but not understanding this. I’m sure this has to do with delta and gamma but don’t get the math here Delta: +$4.80 Vega: +$123.80 Theta: -$43.60 Gamma:+$1.98 stock price is $493. Share this post Link to post Share on other sites
Kim 7,943 Report post Posted January 17, 2018 Why you post here and not on the article? Share this post Link to post Share on other sites
Irish 0 Report post Posted January 18, 2018 Cause the article is on the seeking Alpha app. No place to post Share this post Link to post Share on other sites
Kim 7,943 Report post Posted January 18, 2018 Sorry, I thought you referring to article on our blog https://steadyoptions.com/articles/the-incredible-option-trade-in-vxx-r289/ Could you please point me to the SA article you referring to? Share this post Link to post Share on other sites
Irish 0 Report post Posted January 18, 2018 https://seekingalpha.com/article/357071-profiting-from-the-fight-of-the-greeks Share this post Link to post Share on other sites
Kim 7,943 Report post Posted January 18, 2018 The estimation was based on P/L chart. We don't need to do those calculations manually, any decent software has those P/L charts. Share this post Link to post Share on other sites
