Know your Delta (part 3)

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Know your Delta (part 3)

So to continue from part one and two where I said in part 1: Delta is a measure on how the price of an option may vary in relation to the change in the price of a stock.   Delta can vary between 1.0 and -1.0 (sometimes expressed as 100% or -100%).

In part 2, I showed an example (CBA, price $78.49 – May 2014): The option is out-of-money. The Strike price is 80.09 and therefore ...

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Know your Delta (part 2)

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Know your Delta (part 2)

So to continue from part one where I said: Delta is a measure on how the price of an option may vary in relation to the change in the price of a stock. Delta can vary between 1.0 and -1.0 (sometimes expressed as 100% or -100%).

Delta is a theoretical value and for some people it may complex to calculate.  It is based on a theoretical value.   And worse,  delta cannot be found on most ...

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Know your Delta (part 1)

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Know your Delta (part 1)

At FS Securities we always recommend diversification and for those clients who seek higher return, we trade options for them (options are derivative instrument). They are called derivate because their price is derived from the underlying price of stocks.

Traders who want to use leveraged trading to maximise their returns can trade either Options, Contract For Difference (CFD’s) or margin lending to name a few.

Many years ago options were introduced to Australians.  Several years later, ...

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