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Understanding the difference between all of the Greeks #trading

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ticker lesson

Breakdown

0:00lesson

Options expiration outcomes — in-the-money or out-of-the-money

  • Expiration = one of two outcomes
  • In-the-money = valuable to long side
  • Out-of-the-money = not valuable to long side
0:01lesson

Delta as probability of profit

  • Delta inverse = probability of profit
  • Delta ~23-24 = 76-77% profit chance

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