Mathematical measures of how option prices respond to various factors.
Delta: change in option price per $1 underlying move. Gamma: rate of change in delta. Theta: time decay (typically daily). Vega: sensitivity to implied volatility. Rho: sensitivity to interest rates. Pros use Greeks to construct nuanced positions and manage risk.
Mathematical measures of how option prices respond to various factors. Delta: change in option price per $1 underlying move. Gamma: rate of change in delta. Theta: time decay (typically daily). Vega: sensitivity to implied volatility. Rho: sensitivity to interest rates. Pros use Greeks to construct nuanced positions and manage risk.
In derivatives, Options Greeks is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Delta: change in option price per $1 underlying move. Gamma: rate of change in delta.
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