In Options Trading, What Is the ‘Greeks’ Sensitivity Measure?
The Greeks are a set of risk management metrics used in options trading to measure the sensitivity of an option's price or a portfolio's value to changes in various underlying factors. The primary Greeks include Delta (price change), Gamma (Delta change), Theta (time decay), Vega (volatility change), and Rho (interest rate change).
Traders use the Greeks to quantify and hedge the risks associated with their options positions.