The Option Greeks
The sensitivities that explain why an option’s price moves the way it does.
Lessons
- Why the Greeks MatterAn option’s price reacts to price, time and volatility at once. The Greeks separate those forces.
- Delta: Sensitivity to PriceHow much the option moves when the stock moves — and its hidden second life as a probability.
- Gamma: How Delta ChangesThe acceleration behind delta — small near expiry for far strikes, explosive for near ones.
- Theta: The Melting Ice CubeTime decay — the silent cost option buyers pay and the income sellers collect, every single day.
- Vega: Sensitivity to VolatilityWhy an option can lose money even when you called the direction right.
- Rho: Sensitivity to Interest RatesThe quietest Greek — usually minor, occasionally decisive for long-dated options.
- The Greeks Working TogetherNo Greek acts alone. How they pull against each other in a real position.