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

The Greeks are a set of measures used to assess the sensitivity of an option's price (premium) to changes in various factors. Key Greeks include Delta (sensitivity to price), Gamma (sensitivity to Delta), Theta (sensitivity to time decay), and Vega (sensitivity to volatility).

Traders use the Greeks to quantify and manage the risks inherent in an options portfolio.