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Oct 1
24m 33s

Vega Explained: What is it & How to Trad...

Christopher M. Uhl, CMA
About this episode

Are you looking to save time, make money, and start winning with less risk? Then head to https://www.ovtlyr.com.Options trading doesn’t have to be complicated, but most traders get tripped up by the Greeks. In this video we break down extrinsic value, time decay, Vega, and Delta in plain language so you can finally understand how options really work. If you’ve ever been confused about why your option loses value even when the stock moves your way, this session will clear things up.We start with AMD, looking at real contracts with thousands of trades so you can see exactly how intrinsic and extrinsic value play out. Intrinsic value is straightforward—it’s simply the difference between the stock price and the strike price. But extrinsic value is the premium you pay on top, and that’s where most traders get caught. Time, volatility, and interest rates all factor in, and if you’re not paying attention, they can eat away at your gains before you know it.➡️ Learn why deep in the money options often give you better value than at the money contracts➡️ See how Vega inflates option prices at the money and why it matters for your strategy➡️ Understand how Theta works and why time decay is the real cost of leverage➡️ Find out why Delta is the most important Greek and why it dominates everything else➡️ Discover why selling options is a losing game and how it cost traders huge amounts in the pastWe also look at how implied volatility acts like a balloon—when it expands, premiums rise, and when it deflates, they collapse. That’s why going deeper in the money helps protect you. At the money or out of the money contracts may look cheaper, but they decay far faster and end up costing more in the long run.When it comes to the Greeks, Delta is king. About 80 to 90 percent of an option’s price movement comes from Delta alone. That’s why we keep things simple at OVTLYR. We don’t waste time on fancy spreads or complicated strategies. Instead, we stick to deep in the money long calls or long puts when the market is bearish. It’s all about capturing the move of the stock without gambling on short-term noise.This video also dives into the importance of Gamma, the rate of change in Delta. You’ll see why rolling options helps capture more of the gamma move and keeps your trades working harder. Instead of holding a contract that slows down as it approaches 100 Delta, rolling keeps you in that sweet spot where acceleration is strongest.Finally, we share hard lessons from the past. Selling options may feel like easy money with a high win rate, but one big loss can wipe out months of small gains. That’s why OVTLYR traders focus on proven strategies that build consistent profits without exposing themselves to catastrophic risk.If you want to truly understand how options work and how to use them the right way, this video is a must-watch. Stop guessing, stop gambling, and start trading with clarity, confidence, and control.Gain instant access to the AI-powered tools and behavioral insights top traders use to spot big moves before the crowd. Start trading smarter today 👉 https://ovtlyr.comSubscribe for more real talk and real signals. No fluff, no noise. Just strategies that help you save time, make money, and start winning with less risk.👉 https://www.youtube.com/@ovtlyrdotcom👉 https://www.youtube.com/@10MinuteTrading📌 Video: https://www.youtube.com/watch?v=9jN7gCO0PWc#stocks #trading #investing #stockmarket #options #optionstrading #technicalanalysis #greeks #tradingstrategy #riskmanagement #nasdaq #ovtlyr

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