The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, Kirk here again and welcome back to the daily call. Today, we are going to answer the question, “How closely should you monitor your option Greeks when trading?” I think this is a tough one to answer because I think there’s two parts to it. The first part of monitoring Greeks comes into play with single positions. If you’re looking at a single position, maybe a single iron butterfly or iron condor that you have in an ETF or a stock, then you might look at the Greeks a little bit different because you're looking at it in the context of that single position. We’ve talked about before on the weekly podcast and on videos how you can use Greeks and in particular, Deltas as triggers for adjustments. If you sell the 15 Delta strangle for example and one of the Deltas on one side of your trade gets to 30, then you make an adjustment. That could be one of your triggers. There’s one way of looking at it which is monitoring Greeks on a position type level. Now, the other way of looking at it, I think proba