Charm is the seventh options greek to be discussed in my series of articles explaining the options greeks. As with vanna, charm is used by traders who are making delta hedged trades (i.e. trades where the delta of an options or warrants contract does not change over the course of the trade). My explanation of charm will explain what charm represents, and how charm is used to determine how the delta of an options or warrants contract will change over the passage of time.

There are several news releases from all three regions (the US, Europe, and Asia) this week. The US has six high volatility news releases, while Europe has four high volatility news releases, and Asia has two high volatility news releases. Due to the current market conditions, markets from all three regions will probably continue experiencing high volatility and significant price movement throughout this week.

The US, European, and Asian news releases for this week are as follows (all times are Greenwich Mean Time, which is 2 hours behind Central European Time, and 4 hours ahead of US Eastern Time) :

US

• Monday : Budget Balance at 6:00 PM
• Tuesday : Retail Sales, and PPI at 12:30 PM, and Business Inventories, and Economic Optimism at 2:00 PM
• Wednesday : CPI, and Manufacturing Index at 12:30 PM, Capacity Utilization Rate, and Industrial Production at 1:15 PM, Oil Inventories at 2:30 PM, and FOMC Meeting at 6:00 PM
• Thursday : Unemployment Claims at 12:30 PM, Long Term Purchases at 1:00 PM, Manufacturing Index at 2:00 PM, and Natural Gas Storage at 2:30 PM
• Friday : Building Permits, and Housing Starts at 12:30 PM, and Housing Market Index at 5:00 PM

• This week's US news releases that should cause high volatility are shown in bold type. There are several US news releases this week, and six high volatility news releases. Due to the current market conditions, the US markets will probably continue experiencing high volatility and significant price movement throughout this week.

Europe

• Monday : Switzerland PPI at 7:15 AM, EU Central Bank News Conference at 10:30 AM, and UK Retail Sales Monitor, and House Price Balance at 11:01 PM
• Tuesday : UK CPI, MPC News Conference, RPI, and HPI at 8:30 AM, and Germany Economic Sentiment, EU Industrial Production, and EU Economic Sentiment at 9:00 AM
• Wednesday : Switzerland Retail Sales at 7:15 AM, UK Claimant Count Change, Average Earnings Index, and Unemployment Rate at 8:30 AM, and EU CPI at 9:00 AM
• Thursday : France CPI at 6:45 AM, Italy Trade Balance at 8:00 AM, and Switzerland Economic Expectations at 9:00 AM
• Friday : EU Trade Balance at 9:00 AM

• This week's European news releases that should cause high volatility are shown in bold type. There are several European news releases this week, and four high volatility news releases. Due to the current market conditions, the European markets will probably continue experiencing high volatility and significant price movement throughout this week.

Asia

• Monday : Japan Industrial Production at 4:30 AM, and Japan Household Confidence at 5:00 AM
• Tuesday : Australia Business Confidence at 1:30 AM
• Wednesday : Australia Leading Index at 1:00 AM, Australia Business Confidence at ??:?? ?? (Unknown Time), Japan Monetary Policy, Overnight Call Rate, and Central Bank News Conference at ??:?? ?? (Unknown Time), New Zealand Manufacturing Index at 10:30 PM, New Zealand CPI, and FPI at 10:45 PM, and Japan Industry Activity at 11:50 PM
• Thursday : Australia Central Bank Bulletin at 1:30 AM, and Japan Central Bank Report at 5:00 AM
• Friday : Australia Import Prices at 1:30 AM

• This week's Asian news releases that should cause high volatility are shown in bold type. There are several Asian news releases this week, and two high volatility news releases. Due to the recent market conditions, the Asian markets will probably continue experiencing high volatility and significant price movement throughout this week.

Vanna is the sixth options greek to be discussed in my series of articles explaining the options greeks. From this point on, the options greeks become a little more obscure. However, if you are making a trade that involves one of the lesser used options greeks (such as a delta hedged position trade), you will need to know about them.

As a trader from Deutsche Bank once said about some of the more obscure options greeks (including vanna):

If you don’t incorporate them into your pricing functions, you’ll enjoy extreme but brief popularity, sell lots of cheap exotic options, and then go spectacularly bust.

Therefore, my explanation of vanna will explain what vanna represents, and how vanna is used to determine how the delta or vega of an options or warrants contract will change as the volatility or price of its underlying market changes, so that you can avoid going "spectacularly bust".

Gamma (Γ) is the fifth options greek to be discussed in my series of articles explaining the options greeks. My explanation of gamma will explain what gamma represents, and how gamma is used to determine how the delta of an options or warrants contract will change as the price of its underlying market changes.