Learning
The Greeks
Darren Krett
Monday 19 December 2022
Beta
Understanding Beta in Options Trading Beta is a measure of an asset's volatility in relation to the overall market or a designated benchmark
Beta
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Darren Krett
Friday 10 February 2023
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The Greeks
This just means that they have various positions on (some bullish and some bearish) but their overall portfolio is pretty delta neutral. It can be very difficult to trade directionally, so we often choose to keep our deltas neutral. This means that if there are big directional moves in the market, our portfolio will be at less risk than if we were fully directional and wrong. We rely on theta decay, and implied volatility overstatement as our main drivers of long term edge, not directional trading.
Darren Krett
Monday 19 December 2022
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Darren Krett
Friday 10 February 2023
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