Who is the primary driver of option trades?

Quoting simnz

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Open Interest: It's no Secret Open interest is a concept all option traders need to understand. Although it is always one of the data fields on most option quote displays (also called Option Chain) - along with bid price, ask price, volume and implied volatility - many traders ignore open interest. It is as important as knowing the option's price or current volume. Unlike spot market trading, in which there is a fixed number of units are to be traded, option trading involves the creation of a new option contract when a trade is placed. Open interest...

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Quoting nadiyakinare

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{quote} You) Sellers: If you want to sell options, then Theta and Gamma are the key factors Me) Wrong, theta and vega are key factors You) I will go for the trades like Straddle (buying both puts and calls on the same strike price) and Strangle (buying both puts and calls on different strike prices) Me) if you are long on call and put of same strike (same expiry) then you are just trading vega with expectation bit short direction on underlying. if you are long on call and put of different strike (same expiry) then you are just again trading vega...

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Quoting nadiyakinare

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can i ask how much grip do you have on options greeks understanding ??? please scale it from 1 to 10 .

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Quoting Ef5

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{quote} Funny you mention this because I just learned some new 2nd derivative Greeks this week. Ever hear of Vanna? I thought that one was pretty interesting since dealer hedging can impact the underlying price.

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Quoting nadiyakinare

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{quote} Its nice if you can learn all in depth as much as possible, on initial stages you will be dependent on greeks numbers to adjust your positions but then with experience ,a time will come when you dont need to look at these options Greeks because you can scene and calculate in your head what is going on, and in what situation where to look for..... your experience with judgement will give you few more greeks but you will be not able to explain it to others if you are not good in maths i dont watch greeks since...

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Quoting nadiyakinare

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{quote} OI, for me its just how many people have open contracts on that strike, sometimes i just divide that number by 2 if i see other specific activities against other side. If on call side OTM OI increases and on put side OTM OI decreases then it shows underlying moving short and opposite to watch for long, one needs to select multiple strikes price properly to view this. one can still do tons of accurate trades just on this info.

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Quoting EF5

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{quote} That's a great table, thanks for sharing! I actually first got into options trading about 12 years ago and like to think I have a pretty solid understanding of them. Unfortunately there's very little material out there on 2nd derivative greeks (gamma aside.) I reviewed Options Volatility and Pricing to see if it said anything, but it just sticks with the main greeks (delta, etc). Are you aware of any books that go into detail on the lessor known greeks like vanna and charm? Its been awhile since I studied options last and there's...

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