What Is the Concept of “Greeks” in Options Trading and Why Are They Important?

The Greeks are a set of risk measures used to gauge the sensitivity of an option's price to changes in underlying factors. Key Greeks include Delta, Gamma, Theta, Vega, and Rho.

Delta measures price sensitivity to the underlying asset's price. Vega measures sensitivity to volatility.

They are vital for traders to manage risk and construct hedged portfolios.