Delta is the change in the price of an option for a small change in the price of the underlying stock. It tells option traders how fast the price of the option will change as the underlying stock/future moves.
Gamma is the rate of change of the delta for a small change in the price of the underlying asset. It is important because it shows how fast delta will change as the market price of the underlying asset changes.
Theta shows how much value the option price will lose for every day that passes.
Vega is the rate of change of the options value with respect to the 1% change in the volatility.

The Fusion Investing and Analysis Fund has sold 5 FDX June $90 Puts (FDXRR) at $4.00.
For an fusion analysis of Fedex see yesterday’s post.
With 28 days to expiration selling at $4.00, gives cost if put of $86, return on total risk of 4.65%, annualised to 60%, return on buying power of 15.5% and a 2.5% discount from the price.
This transaction delivers $2,000 cash to the fund. I anticipate holding until expiration. I’ll update this entry with further details tomorrow.

Will you accept delivery?
On the BMW Method 16 year chart Fedex (FDX) sits at -2.4 RMS, with a RF of 1.45. For a company with an average CAGR of 16.3% over that time, an excellent moat and bright future, FDX is a great prospect. If BMW, RMS and RF are all meaningless then either follow the links and your nose or accept it implies FDX is cheap right now.
It is worth noting on the 20 year and 25 year charts FDX is respectively -1.72 and -0.35 RMS.
Almagne addressed this issue …