"The Greeks"

Posted by Branden7 on July 21, 2009 (01:59PM)

I've been watching Overbys' webinar videos and have come to the one on Greeks. I've seen a couple other videos and done some reading on investopedia on the greeks as well. Anyway to get to the point I still don't fully understand everything thats behind these greek dealies. Could anyone suggest a good book or a more in depth video or something along those lines that would help me to broaden my understanding of the Greeks? Thanks..

While i'm at it...anyone know any particularly good books on technical analysis?

Thanks again.

Posted by OldFart on July 22, 2009 (10:58AM)

Larry McMillan's "Options as a strategic investment" is one of the classics. Here is a video on option pricing with focus on implied volatility, one of the best I know - http://masteroptions.com/?p=3

Posted by Branden7 on July 22, 2009 (04:40PM)

That is quite the book. I'll check it out thanks for the advice.

By the way that link appears to be dead.

Posted by OldFart on July 22, 2009 (09:57PM)

Works for me, just copy/paste URL in a browser

Posted by butterfly1025 on July 24, 2009 (01:35PM)

Hello,

How are you.  I am new to this group. I need help on the following: When the Bid/Ask price spread of an option is too wide, how do you trade it? For example DPM's Sep Put 25.0, option name DPMUE.X has a bid of 1.60 and an ask of 2.05. What is the best strategy in trading this kind of spread? Please help me. Thanks so much.

Posted by Branden7 on July 24, 2009 (02:26PM)

I'm probably not really the person to be answer this question as i'm pretty new to all this too. I would however suggest you create an entirely new post to ask the question in as more people will be able to see your question.

In my limited understanding...in general just try to go somewhere around the middle(average) of the bid/ask. Might have to add a few nickles if your buying or subtract a few if your selling, but keep it somewhere around the middle and see if it takes.

Posted by affinity1 on February 11, 2010 (04:55PM)

"Trading Option Greeks" by Dan Passarelli is a great book that explains the greeks very well. I don't think you should be trading options until you read about and understand the variables involved in options.

-- John

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