Option Greeks Explained
Master the metrics that measure how options behave as market conditions change.
Option Greeks measure how sensitive an option's price is to changes in the stock price, time, and implied volatility. Each Greek isolates one variable and quantifies its impact—helping you gauge your risk.
Δ
Delta
Measures how much an option's price changes relative to a $1 move in the underlying stock.
→Γ
Gamma
Measures the rate of change of Delta—how quickly Delta changes as the stock moves.
→Θ
Theta
Measures how much value an option loses each day as it approaches expiration (time decay).
→ν
Vega
Measures how much an option's price changes when implied volatility changes by 1%.
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