Part11 Trading Masterclass

Key Players in the Options Market
Option Buyers (Holders): Pay premium, have rights.

Option Sellers (Writers): Receive premium, have obligations.

Retail Traders: Use options for speculation or hedging.

Institutions: Use advanced strategies for income or risk management.

Option Pricing: The Greeks
Option pricing is influenced by various factors known as Greeks:

Delta: Measures how much the option price changes for a ₹1 move in the underlying.

Gamma: Measures how much Delta changes for a ₹1 move.

Theta: Measures time decay — how much the option loses value each day.

Vega: Measures sensitivity to volatility.

Rho: Measures sensitivity to interest rates.

Time decay and volatility are crucial. OTM options lose value faster as expiry nears.