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<DIV><FONT color=#000000>Hi Ketayun,</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV>Delta is a measure of how much an option's premium changes in relation to
the underlying futures/stock, and is constantly changing.</DIV>
<DIV>If the delta of a gold option is <STRONG>.</STRONG>25, gold would have to
go up $4 for the premium to appreciate by $1. So you'd need four of these
options to equal one contract.</DIV>
<DIV>Generally speaking, an option that is at-the-money has a delta of
<STRONG>.</STRONG>5, and the more intrinsic value it has the higher the delta
rises. The farther out-of-the-money the option moves, the lower its delta.</DIV>
<DIV> </DIV>
<DIV>Hope it helps,</DIV>
<DIV> </DIV>
<DIV>Dennis C.</DIV>
<DIV> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 solid 2px; MARGIN-LEFT: 5px; PADDING-LEFT: 5px">
<DIV><FONT face=Arial size=2><B>-----Original Message-----</B><BR><B>From:
</B>Ketayun <<A
href="mailto:ketayun@xxxxxxxxxxx";>ketayun@xxxxxxxxxxx</A>><BR><B>To:
</B>RealTraders Discussion Group <<A
href="mailto:realtraders@xxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxx</A>><BR><B>Date:
</B>Friday, April 02, 1999 17:12<BR><B>Subject: </B>Alpha,beta and
delta<BR><BR></DIV></FONT>Hi,
<P>What is the meaning of a beta and delta rating? I know that Alpha refers
to the stock volatility in comparison to the rest of the stock market.
<P>Thanks,
<P>Ketayun Rustom </P></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Sun Apr 04 17:44:18 1999
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Subject: Re: Alpha,beta and delta
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<DIV><FONT color=#000000>Hi Ketayun,</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV>Delta is a measure of how much an option's premium changes in relation to
the underlying futures/stock, and is constantly changing.</DIV>
<DIV>If the delta of a gold option is <STRONG>.</STRONG>25, gold would have to
go up $4 for the premium to appreciate by $1. So you'd need four of these
options to equal one contract.</DIV>
<DIV>Generally speaking, an option that is at-the-money has a delta of
<STRONG>.</STRONG>5, and the more intrinsic value it has the higher the delta
rises. The farther out-of-the-money the option moves, the lower its delta.</DIV>
<DIV> </DIV>
<DIV>Hope it helps,</DIV>
<DIV> </DIV>
<DIV>Dennis C.</DIV>
<DIV> </DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 solid 2px; MARGIN-LEFT: 5px; PADDING-LEFT: 5px">
<DIV><FONT face=Arial size=2><B>-----Original Message-----</B><BR><B>From:
</B>Ketayun <<A
href="mailto:ketayun@xxxxxxxxxxx";>ketayun@xxxxxxxxxxx</A>><BR><B>To:
</B>RealTraders Discussion Group <<A
href="mailto:realtraders@xxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxx</A>><BR><B>Date:
</B>Friday, April 02, 1999 17:12<BR><B>Subject: </B>Alpha,beta and
delta<BR><BR></DIV></FONT>Hi,
<P>What is the meaning of a beta and delta rating? I know that Alpha refers
to the stock volatility in comparison to the rest of the stock market.
<P>Thanks,
<P>Ketayun Rustom </P></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Sun Apr 04 17:44:20 1999
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From: "Gary Fritz" <fritz@xxxxxxxx>
To: Allan Kaminsky <allank@xxxxxxxx>
Date: Fri, 2 Apr 1999 18:02:43 -0700
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Subject: Re: What's the deal with TradeLab?
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Allan Kaminsky <allank@xxxxxxxx> wrote:
> [TL] will enable intelligent traders who don't necessarily have
> formal scientific training to get on a significantly more level
> playing field by being able to marshal cutting-edge math tools in
> their approach to the trading environment.
Absolutely. I didn't mean to imply you had to have a PhD in nuclear
physics to use it. :-) But TL is definitely aimed at a technically-
savvy trader, one who is comfortable doing modest (or significant)
programming, and one who either understands the complex mathematical
tools it offers or who is willing to learn them. I think that will
narrow the potential market considerably.
I should also add that there's nothing *wrong* with the way that non-
technoid traders trade. If you're good at reading charts and making
discretionary market calls, and you're making money at it, then by
all means do what works for you. Some of us have fewer skills in
that area but more skills in the programming/etc field, and we'll do
what works for us. And something like TL would be a good toolkit for
that. As Allan says, it will hopefully offer us a new set of tools
to exploit previously-unavailable opportunities with very little
competition.
Gary
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