How Is the “Greeks” Risk Management Framework Used in Options Trading?

The Greeks (Delta, Gamma, Theta, Vega, Rho) are a set of risk metrics that quantify the sensitivity of an option's price to changes in various underlying factors. Traders and portfolio managers use them to measure, understand, and manage the different dimensions of risk in their options positions.

For instance, Delta is used for directional risk, while Gamma measures the rate of change of Delta.