0-9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Featured video
External links


Hide links

The Greeks refers to parameters which affect an option's price. They are called 'Greeks' because each is represented by a letter of the Greek alphabet:


Delta refers to the relationship between the option's price and the Underlying, for calls, Delta is positive, for puts, Delta is negative. Gamma is the rate at which Delta is changing, a higher Gamma means Delta will fluctuate more based on changes to the Underlying. Vega is the sensitivity of the option price to changes in the Volatility of the Underlying. Theta measures the effect of time on the value of the option. Rho is the sensitivity of the option to changes in interest rates, this usually has the lowest impact on the price of an option than the other Greeks.
Rating: 0/5 (0 votes cast)
Contributed by: Ralph Windsor

External Links

Suggest a Link

The Greeks: What They Are and How to Use Them

ThinkOrSwim guide to the Greeks.

Rating: 0/5 (0 votes cast)

View ThinkOrSwim in Options Market Glossary Directory

Managing by the Greeks

Linda Piazza describes the basics of using the Greeks to manage options strategies like Iron Condors, with reference to Delta and Vega in particular.

Rating: 0/5 (0 votes cast)

View Options Investor in Options Market Glossary Directory


There are currently no comments for this term.

Post a Comment

You must be registered and logged in to post a comment.


There are currently no videos for this term.