Speed

Filed Under » , ,
Dictionary Says

Definition of 'Speed'

The rate at which the gamma of an option or warrant will change in relation to underlying price in the underlying market. More specifically, it is the third order derivative of an options value to price. A high speed value indicates that gamma is more sensitive to moves in price of the underlying asset.

 
Investopedia Says

Investopedia explains 'Speed'

Speed is used by investors who utilize both delta-hedging and gamma-hedging option trading strategies, and provides the investor with information on the vega or delta of an option per year (the daily figure can be found by dividing the result by the number of days in the year). As the number of days left on the options contract get smaller and smaller, charm becomes more volatile and less accurate.

 

Related Definitions

Search results for

'Speed'

  • Fundamental Speed: The "Duck-And-Jab" Approach To Forex

    http://www.investopedia.com/articles/forex/09/fundamental-speed.asp
    Fundamental Speed: The "Duck-And-Jab" Approach To Forex. ... By using the fundamental
    speed process you know the exact times you need to trade. ...

  • Speed Read SEC Filings For Hot Stock Picks

    http://www.investopedia.com/articles/stocks/09/speed-read-filings.asp
    Speed Read SEC Filings For Hot Stock Picks. October 08 2009 | Filed Under »
    Fundamental Analysis, Stock Analysis, Stocks. Most people ...

  • Speed Resistance Lines

    http://www.investopedia.com/articles/technical/03/061803.asp
    Speed Resistance Lines. ... Speed resistance lines (SRL) are especially useful
    when looking at issues that are inside of strong trends. ...

  • Small Business: Speed Up Receivables To Avoid A Cash Crunch

    http://www.investopedia.com/articles/fundamental-analysis/08/factor-receivables.asp
    Small Business: Speed Up Receivables To Avoid A Cash Crunch. February 07 2010 |
    Filed Under » Accounting, Business, Entrepreneur, Small Business. ...

  • Dubai: Unsafe At Any Speed

    http://stocks.investopedia.com/stock-analysis/2009/Dubai-Unsafe-At-Any-Speed-RBS-SCBFF-HBC-C-JPM-AIG1202.aspx
    ... Article; Comments (0). Dubai: Unsafe At Any Speed. Posted:
    Dec 02, 2009 12:59 PM by Eugene Bukoveczky. ...

  • IBM Pays For Speed

    http://stocks.investopedia.com/stock-analysis/2010/IBM-Pays-For-Speed-IBM-NZ-ORCL-CVLT-FTNT0922.aspx
    ... Article; Comments (0). IBM Pays For Speed. Posted: Sep
    22, 2010 09:56 AM by Stephen D. Simpson, CFA. ...

  • Full Speed Ahead For Carnival Cruise

    http://stocks.investopedia.com/stock-analysis/2010/Full-Speed-Ahead-For-Carnival-Cruise-CCL-RCL-LVS-WYNN-H-HOT-MAR1230.aspx
    ... Article; Comments (0). Full Speed Ahead For Carnival Cruise.
    Posted: Dec 30, 2010 08:58 AM by Greg Sushinsky. ...

  • RPM Earnings Speed Ahead

    http://stocks.investopedia.com/stock-analysis/2010/RPM-Earnings-Speed-Ahead-RPM-SHW-MAS-PPG-VAL0108.aspx
    ... Article; Comments (0). RPM Earnings Speed Ahead. Posted:
    Jan 08, 2010 10:24 AM by Greg Sushinsky. ...

  • Confirming Price Movements With Volume Oscillators

    http://www.investopedia.com/articles/technical/02/082702.asp
    Use this indicator to validate a change in price direction and moving averages.

  • 10 Tips For Choosing An Online Broker Slideshow | Investopedia

    http://www.investopedia.com/slide-show/choose-online-broker/website-speed.aspx
    ... Speed Kills. Even if you aren't planning on momentum plays, where every
    second counts, the broker website's speed is important. To ...

Related Articles

Partner Links