Rule #3 : Delta, delta and delta
Posted by pimpra @ Wed 25 Jun, 08, 11:12AM under Uncategorized
This blog has been viewed by 76 visitor(s)
This blog has been viewed by 76 visitor(s)
I don't want to waste any of your time, so if you want to know what delta is all about, look it up at its wikipedia site here.
Delta is important because it measures how much your derivate will move relative to the "mother stock" (underlying asset).
Based on my not-so-experienced experience, never buy anything that has a delta lower than 0.3. Means for call options, cannot buy less than 0.3. For put options cannot buy more than -0.3 (-0.2 is more than -0.3).
There goes my rule #3. Haha, very short leh
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pimpra, may i know how u derived your 0.3 from? |
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@ Wed 25-06-08 02:20PM
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