Gamma
1. What is Gamma? Gamma is one of the “Greeks” used in options trading, representing the rate of change in an option’s Delta for each one point change in the price…
Category:
Advanced Options Learning
19 Articles
19
Theta
1. What is Theta? Theta is a key concept in options trading, representing the rate of change in an option’s price for each day that passes, assuming all other factors remain…
Vega
Introduction Vega measures the rate of change in an option’s price based on movements in implied volatility. For example, if a call option has a Vega of 0.10, its price…
Delta
Introduction Delta is arguably the most important “Greek” for options traders to understand. It measures the rate of change in an option’s price based on movements in the underlying asset’s price….