When using option Greeks to construct trading strategies, one common approach is to use delta to hedge against the directional risk of holding an underlying asset. Delta measures how much the price of an option changes in relation to a movement in the underlying asset, with a value of 1 indicating that the option’s price moves in perfect lockstep with the underlying asset.
For example, let's say that you own stock in Company ABC and are concerned that the stoc...

Option Greeks: Delta Gamma Theta Vega
Theta measures the rate of decline in an option's value as time passes. This means that theta can be used to determine how much value an option will lose over time, helping traders decide when to sell an option before it loses too much value.
For example, say you have purchased a call option on a stock with a strike price of $50 and an expiration date of three months from now. If the current market price of the stock is $50, the op...

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Tesla's profit dropped 24% with margin compressed after global price cuts
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Key Takeaways:
Attitude: Tesla sees 2023 as a unique opportunity. As many carmakers are working through challenges with the unit economics of their EV programs, Tesla aims to leverage its position as a cost leader. The management pointed out that the current macro environment remains uncertain....