Lambda is a ratio denoting the change occurring in the price of an option as compared to a 1% change the volatility of the option.
In other words, this is nothing but a partial derivative of an option’s price as compared to its volatility. Kappa, Vega and sigma are the synonyms for Lambda.
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Entries Tagged as 'Technical Analysis'
Lambda
October 1st, 2008 · No Comments
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Financial Engineering
September 24th, 2008 · No Comments
Financial Engineering
When an existing design or financial product is repackaged into a new form by the use of new concepts and tools, it is called financial engineering
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How Does Binomial Tree Applied in Options Market?
September 23rd, 2008 · 1 Comment
The possible values that an option may possibly take at various time periods shown in a graphical presentation is called Binomial tree. The option value is based on the underlying asset and the option value at any point of time is dependent on the chance of the rise or fall in the rates of the […]
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Binomial Option Pricing Model
September 22nd, 2008 · No Comments
The Binomial Option Pricing Model, which makes use of iterative process and allows specifications of specific intervals in the period between the date of option expiration and the valuation date is termed as the binomial option pricing model. This model was found by Cox, et al in the year 1979.
The model is proved to be […]
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How Does “At The Money” Applied in Options Market?
September 10th, 2008 · No Comments
What Does “At The Money” Mean?
The option is said to be at-the-money, if the market price as well as strike price of the underlying asset happen to be equal.
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The Candlestick Secrets Course Review
May 26th, 2008 · No Comments
Introducing an Amazing New Candlestick Secrets Course That Teaches You How to Master the Art of Candlestick Charting (in The Shortest Possible Time) and Allows You To Make Bigger Trading Profits, With a Greater Degree of Accuracy and Less Risk!
Candlestick patterns are extremely effective when interpreted properly, and some patterns are up to a 90% […]
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Technical Analysis Series Classes Review
May 19th, 2008 · 1 Comment
Technical Analysis Series Classes provided by Options University are focus on teaching you the just time-tested PROVEN technical analysis strategies that work in the real options trading floor.
You will learn all the strategies on how to pinpoint the market turns and pull more profits out of the markets by using these closed-door secret technical analysis […]
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