Why Options Greeks Matter
Why Options Greeks Matter Options aren’t just about predicting whether a stock will go up or down. The Greeks give you a deeper understanding of how your option’s price will react to market changes — whether that’s movement in the stock, the passage of time, or shifts in volatility. Ignoring Greeks means trading blind. Mastering them gives you a serious edge. Breaking Down the Greeks Delta -Measures how much an option’s price will move for every $1 move in the underlying stock. Rick shows how Delta also works as a probability tool, helping you gauge the chance of your option expiring in the money Theta – The “ time decay''Greek. It works to the detriment of option buyers, but to the benefit of option sellers. Learn why it’s called the “silent killer” for long positions and how sellers use it to their advantage. Gama- Dictates how fast Delta changes. Rick explains why Gamma risk is particularly dangerous for short positions, especially in volatile markets. Vega – Measures sensi...
