The Traderszone Network

Published in TZ Latest News 6 September, 2017 by The TZ Newswire Staff

Greeks and price. Question.

Hi

I want to make a question about Greeks. I think it is basic stuff but I have doubts.
I want to know if the change in the option’s price is completly explained by the greeks.

If we take two otm consecutives strikes for SPY we can see that maybe the greeks doesn’t explain the change .
Now Spy is at 246,50. See the difference in premium between two otm Spy Oct. calls, 248 and 249 .
248 call is 2,04 and 249 call is 1,55 so a 0,49 difference, 24%

Now imagine Spy moves 1 dllar…

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