Hey guys I have been trading some gold options on my brokerage account I have seen some successful trades and some not I have one question I know delta makes an option decrease in value as it gets closer to expiration I was trading a gold options it went up £10 so I should have been in profit as shown by the interactive broker calculator but it ended in a loss and it's making me rethink my strategy anyone else come across this
Posted by jackoldfield12_
2 Comments
Correct me if I’m wrong, but I believe Delta (when multiplied by 100) is how much money you are earning every time the stock price goes up one dollar.
– **Delta** measures the rate of change of the theoretical option value with respect to changes in the underlying asset’s price
– **Theta** measures the sensitivity of the value of the derivative to the passage of time
You don’t provide enough info. What expiry date, what strike, purchase date, when did you unwind, direction,…
Frankly, it would be wise to stop gambling now and dedicate more time to studying the basics of options before re-entering the market.