Options and Strategies

Explore a crisp and concise description of stochastic processes as in the world of Options at Pandemonium. Our website’s comprehensive resources delve into the intricacies and applications of this mathematical concept, alongside limiting the content to just what’s required and relevant for an existing and/or aspiring financial markets practitioner.

Pricing of an Option – Most pricing models calculate the price of an option using some form of hedging such that the portfolio of the option…

Explore the mighty Black-Scholes Model simply and intuitively explained from the lens of a financial markets practioner, at Pandemonium. This is an authentic assessment of the model that breaks down all jargon and clears up complex math (refresher on Lognormal Distribution) so you learn better to remember for longer. Explore our guidance and insights at Pandemonium today!

Start your journey into the world of options with the first principles of Put Call parity explained with intuition and logic at Pandemonium. Visit us today for some fun-filled real-world lessons in financial markets and its products.

Option Greeks – risks embedded in an option contract that appear with movements in its variables and determine…

Implied vs Realised Vol – an extensively used term for the options world and one that crucially determines an option’s price…

Delta and Gamma hedging explained with crystal-like clarity and real market examples at Pandemonium. Take a tour of the extensive resources from a finance practioner’s lens on the website to enhance your understanding of option greeks, how they interact in different strategies and managing related risks. Pandemonium breaks down jargon for you and makes learning fun. Visit us today!

Hedging and valuation of the option portfolio also crucially depends on the vol model assumptions…

Start your journey into the world of Options and strategies with nothing more than intuition and logic at Pandemonium. Let’s begin with the basics of straddles and the greeks therein to better understand the risk of the strategy and its application. Authentic, intuitive, logical and fun – Pandemonium is for every student of finance, visit us today!

Discover the ins and outs of the long strangle options strategy with Pandemonium's comprehensive resources. Simply and Intuitively explained from a markets practioner’s lens, Pandemonium helps you navigate option strategies with real world references and applications. Visit us today!

Generally structured as buying a lower strike (base case at the money) call and selling a higher strike…

Generally structured as buying a higher strike put and selling a lower strike put for the same expiry and same notionals…

The Calendar spreads option strategy and its application simply explained at Pandemonium, a web warehouse of financial markets knowhow. Let’s break down all jargon and explore how the dynamic strategy greeks interact with each other with changing market conditions. Pandemonium uses intuition and logic to bring some of the best lessons in finance to you, visit us today!

Risk reversals involve either selling an OTM Put and Buying an OTM call or Buying an OTM Put and Selling an OTM call…

Discover the intricacies of the butterfly spread option strategy with Pandemonium. Coming from a seasoned finance practitioner’s lens this is an authentic and practical assessment of the product, crisp and concise, very relevant for your day to day trading. Dive into our resources for some expert insights and guidance today!

Are a binary payoff strategy – i.e. payoff is either zero or the notional of the trade – conditional on the underlying’s price trading…

These options officially fall in the realm of structured products as they can be understood as a combination of at least two different options…