What Is the Significance of the "Greeks" (Delta, Gamma, Vega, Theta, Rho)? ▴ Learn

What Is the Significance of the “Greeks” (Delta, Gamma, Vega, Theta, Rho)?

The Greeks are a set of risk parameters that measure an option's sensitivity to changes in the five key inputs of the Black-Scholes model. They are crucial for options traders to manage portfolio risk.

Delta measures price sensitivity to the underlying, Gamma measures delta's change, Vega measures volatility sensitivity, Theta measures time decay, and Rho measures interest rate sensitivity.

Does Delta Hedging Protect against Changes in Interest Rates (Rho)?

How Does the “Greeks” (Delta, Gamma, Theta, Vega) Apply to a DAO’s Options Trading Strategy?

Which ‘Greek’ Is Directly Influenced by the Risk-Free Interest Rate Assumption in Black-Scholes?

How Does a ‘Greeks’ (Delta, Gamma, Vega, Theta, Rho) Measure Option Price Sensitivity?