Derivatives & Option trading strategies

Derivatives & Option trading strategies

Derivatives are financial securities whose value or price is derived from an underlying asset or a group of assets, such as stocks, bonds, commodities and currencies, among others. Whether you are a seasoned long-term investor or a savvy short-term speculator, the derivatives trading is the right place for you. Derivatives can be used to either hedge portfolio in stocks, indices or other investments, or to benefit from sharp movements in their prices. Engage in cost-effective derivatives trading in India in categories, such as, Index, Equity and Currency and get exposure to higher investments.

The options are tools to Hedge or taking advantage of the current position, there are N number of permutation and combination for doing so, option premium is determined by the three factors mentioned earlier – intrinsic value, time value and volatility. But there are more sophisticated tools used to measure the potential variations of options premiums. They are as follows:

  • Delta
  • Gamma
  • Vega
  • Rho