Options Videos

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. 

Higher vega, or volatility, increases the price of an option.  Option buyers want to get into an option when the volatilty is low. 

Rho is the least used component of option price.  Rising interest rates will increase the value of a call option while decreasing the price of a put option.  Decreasing the interest rates will have the opposite effect.

The speaker takes a look at options and covers the basic components, specifically discussing the definition of a strike price and also how to pick the appropriate strike price for an option.

The married put, or synthetic call, is an options strategy which enables the trader to go long a stock with limited risk.  The risk mitigation is done through purchasing a put which will protect the downside.  Traders will engage in married puts to allow them to take advantage of an expected upside move with an absolute downside risk limit.