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Just Knowing Delta Gamma Theta Will Not Make You a Good Option Trader

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You need to know more than Delta, Gamma, Theta to be a good option trader. To be honest Delta, Gamma, Theta are just the theory on how options are made – they do not give direction of options. You can download a file here where I have explained in details about Delta, Gamma, Theta of options. But this is theory after this you need to learn strategies to make monthly income.

See this chat where this person is failing to make profits even after knowing about Delta, Gamma, Theta:

I keep getting calls from some option traders like Sir I am shorting an option with Delta 0.4 – will this make profits for me.

What is Option Delta?

It is the rate of change of the price of the option with respect to its security’s price. When the security’s price changes the delta of the options will also change – all the options whether near or far month – closer strikes or far off strikes.

For Calls the delta of an option ranges in value from 0 to 1. For Puts the delta of an option ranges in value from 0 to -1.

For every 1 point move in the underlying security – the delta of all its options will change.

Delta of far out-of-the-money options are close to 0 like 0.1 or 0.2, whereas near the money (ATM) have deltas like 0.4 or 0.5 and deep in the money (ITM) have deltas near to 1 like 0.8 or 0.9.

Most Important Point To Remember:

Option Delta varies from 0 to 1 but there is no guarantee or even an assurance that 0.4 or 0.5 or 0.6 or whatever Delta will go in the money or expire worthless.

It is better to research yourself to try out which option strikes works for you. Whether you are a buyer or a seller of options there is no point seeing what Delta an option has before proceeding to buy or sell it.

If there was some assurance that 0.6 Delta or 0.7 will go in the money or expire worthless then all traders would have done the same trade in that option strike – resulting in NO TRADE in that option. If everyone is a buyer or a seller in an option then the trade will not take place.

All this comes with research not reading theories which strikes are likely to expire worthless or likely to go in the money and trade then with hedge so that by chance something goes wrong you will not lose much.

My course will teach you which strike to buy and sell to make a monthly income peacefully.

You can enroll for the course here.


What you should do now

1. If you have still not subscribed for my free 5 days course you can do by filling the form above. You will learn a lot about option trading.

2. If you are a new option trader, not much experienced and are making losses you can do my paid course. I recommend Nifty Conservative Option Course for beginners because it is easy to understand and easy to trade. Even a 18 year old young trader or a housewife can learn it and start trading from next day. It will help you to earn consistent monthly income without any software or speculation or stress or big risk. You will learn proper hedging strategies that works in any market condition.

3. If you are banknifty weekly options trader you can do my Bank Nifty Weekly Options & Futures Strategy Course. You will learn future and option hedging strategies that works in volatile market condition.

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Here is complete process of my course

1. Once you pay I will send you the course materials for studying to your email.
2. You read and ask me questions via phone/whatsapp/email to clear doubts.
3. Then you start paper trading and still can ask me questions.
4. After about one month you can start trading.
5. Since doubts can come anytime the support will be there for one year.

Within one month you can start trading on your own. No need to depend on anyone once you are on your own.

If you have any question you can contact me.

You can read about me here and my trading mistakes here.

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INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.

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About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

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