Wednesday, July 28, 2010

[TheOptionClub.com] Translating from the Greek

 

Can somebody tell me why traders don't use percentages instead of Greeks when dealing with individual positions - or maybe translate the Greeks into percentages of the underlying or the investment. For example, if I have an iron condor with a margin of $1,600, isn't it more informative to express the delta as a percentage of this margin, rather than as a dollar number?

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