What Are Options Greeks?
Options Greeks measure how option prices change with various factors. Professional traders use Greeks to manage risk and optimize strategies.
The 5 Main Greeks:
1. Delta (Δ) - Price Sensitivity
- Measures price change per $1 stock move
- Call Delta: 0 to 1 (positive)
- Put Delta: -1 to 0 (negative)
- ATM options: ~0.50 delta
2. Gamma (Γ) - Delta Change Rate
- Rate of Delta change
- Highest for ATM options
- Critical for risk management
3. Theta (Θ) - Time Decay
- Daily premium decay
- Accelerates near expiration
- Enemy of option buyers, friend of sellers
4. Vega (ν) - Volatility Sensitivity
- Price change per 1% IV move
- Higher for longer-dated options
- Critical for volatility trading
5. Rho (ρ) - Interest Rate Sensitivity
- Price change per 1% rate change
- More important for LEAPS
- Usually less significant
Visualize Greeks with Our Heatmap Tool
See Greeks across all strikes and expirations in an interactive heatmap.
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