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How Much Does an Option Price Change?
So if we price an option at a 16% annualized in annualized term over one day, it should move approximately 1% times point A. So that's called the break even struggle or the money struggle break even. This is kind of the pricing that's implied in there about how volatile that underlying security will be during the life of that option. Okay. Then after we understand what an option price is, we need to understand the Greeks, right? Because every option has derivatives. And second, because we want to risk manage our option like general. Right.