Option Greeks

The speaker covers two of the key option greeks, vega and rho.  Vega represents an options price change in response to changes in volatility while rho represents an options pricing adjustment in response to interest rates. 

The speaker discusses the time value of options, or theta.  Theta is the value associated to the time component in an option.  An option with a greater term to expiration will have theta representing a higher

The speaker provides reasoning to why a delta-neutral hedge is not sufficient in mitigating risk.  A delta neutral portfolio is only delta neutral for a point in time.  The speaker provides a real trading example with the dollar/euro forex pair.  To create a delta neutral hedge, he shorts the Euro.  However, once the

The speaker covers scalping gamma and hedging delta neutral; he walks through a simple example of how to delta hedge your portfolio.  When you are rebalancing your porfolio, the profits gained from hedging neutral are needed to offset the cost of the position.  This rebalancing of shares to adjust the porfolio to delta neutral

The speaker provides a detailed description of option delta using detailed examples.  He talks about how Delta provides the sensitivity of call option or put option to a change in the price of the