Convexity, Options Trading, Volatility Trading, Moontower, Option Greeks.
constant slope because their deltas don’t change. Your P/L matches the stock’s changes. It’s just weighted by the size of your position. Option deltas do change. We know a call delta varies between 0 and 100%. Imagine a stock is trading for $40. You buy a 1 year 50 strike call @ 16% vol. It will