Explain the Concept of 'Greeks' in Options Trading ▴ Learn

Explain the Concept of ‘Greeks’ in Options Trading.

The 'Greeks' are a set of risk measures that quantify the sensitivity of an option's price to changes in underlying factors. Key Greeks include Delta (price change of the option relative to the underlying asset), Gamma (rate of change of Delta), Theta (time decay), and Vega (sensitivity to volatility).

Traders use them to manage and hedge their options portfolio risk.

What Is the Concept of ‘Greeks’ in Options Pricing and Risk Management?

How Does the “Greeks” Measure Vega Quantify Volatility Risk for a Market Maker?

How Does the Concept of ‘Greeks’ Apply to Financial Derivatives like Options?

What Are the ‘Greeks’ in Options Trading and What Do They Measure?