What Option Greek Is Highest for OTM Options? ⎊ Path

What Option Greek Is Highest for OTM Options?

While Gamma is highest for ATM options, the Greek most relevant to OTM options is Theta. Theta represents the time decay that erodes the premium, which is entirely time value for OTM options.

Delta is lowest for OTM options, approaching zero.

What Is the Typical Relationship between Theta and Delta for At-the-Money Options?

What Is the Relationship between Gamma and Time Decay (Theta)?

What Is the Relationship between Theta and the Option’s Moneyness (In-the-Money, Out-of-the-Money)?

Why Is Gamma Highest for ATM Options?

Why Does an At-The-Money (ATM) Option Have the Highest Time Value?

How Does Theta Affect ATM Options Compared to ITM or OTM Options?

Why Is an ATM Option Considered the Most ‘Pure’ Volatility Play?

What Is Rho and When Is It Most Relevant in the Context of Long-Term Derivatives?

Glossar

Greek

Sensitivity ⎊ : These are the first-order partial derivatives of an option's price with respect to underlying parameters, providing a measure of risk exposure.