Options Greeks: The Complete Guide to Reading Your Trade's P&L
Options Greeks: The Complete Guide to Reading Your Trade's P&L March 17, 2026. You sold a 20-delta strangle on SPY, collected $9.04 in premium, and
What is Delta in Options? The P&L Driver You're Underestimating
You sold a 20-delta strangle on SPY. Net delta: approximately zero. Two days later, SPY drops $10 and your position is down $76 from delta alone, nearly wiping out two
What is Gamma in Options? The Hidden Cost of Short Premium
Your SPY strangle collected $904 in credit. Five quiet days pass, and theta deposits $173 into the account. Then SPY drops $15 in a single session, and gamma eats every
What Is Vega in Options? The Greek That Actually Drives Your P&L
You sold a 20-delta strangle on SPY at 31 DTE. Five quiet days pass. Theta drips $173 into the account. Then implied volatility spikes 2 points overnight, and vega rips
Selling Options for Income: What Nobody Tells You
August 5, 2024. The Japanese yen carry trade unwinds in a single session. VIX triples from 23 to 65 intraday. SPY drops 5% in three trading days, closing at $517.
Theta Decay Explained: What Your Options P&L Actually Looks Like
We ran two short volatility trades over the past couple of months. One in TLT, one in EWY. Both had positive theta decay every single day. Both had a positive
Volatility Smile vs Skew: What's the Difference?
SPY's 25-delta put carries an implied volatility of 29.2%. The same-delta call sits at 16.7%. That's a 12.6 percentage point gap, and it
Variance Risk Premium: The Complete Guide to the Edge in Options
What Is the Variance Risk Premium and Why Does It Matter? October 10, 2025. SPY implied volatility sits at 22% while realized volatility has settled around 12%. That 10-point gap,
IV Crush: Why Your Options Lost Money When You Were Right
You bought calls on NVDA before earnings. The stock jumped 2.8% the next morning. But your options still lost money. The culprit: implied volatility collapsed overnight. This is IV crush, and it is one of the most misunderstood forces in options trading.