• BREAKING NEWS: SPX, Nasdaq on Pace for Big Monthly, Quarterly Wins
 
SIR Logo
  • About Us
    • Who We Are
    • About Bernie Schaeffer
    • Our Newsroom
    • FAQ
    • Contact Us
    • Corrections
    • Ethics & Fact Checks Policy
  • Market News
    • Sign Up for Free Market Newsletters
    • Opening View
    • Midday Market Check
    • Market Recap
    • View All Free Subscriptions
    • Schaeffer's Volatility Scorecard
    • Featured Publication
    • From the Top
    • Monday Morning Outlook
    • Indicator of the Week
    • Editor's Picks
    • View All
    • Trading Analysis
    • Best & Worst Stocks
    • Earnings Preview
    • Investor Sentiment
    • Quantitative Analysis
    • Technical Analysis
    • VIX & Volatility
    • View All
    • Stock Options
    • Intraday Options Activity
    • Most Active Options
    • Trade Postmortems
    • Options Recommendations
    • View All
    • Trading Education
    • Strategies & Concepts
    • Expectational Analysis
    • View All
    • Market News
    • Buzz Stocks
    • Stocks on the Move
    • Analyst Update
    • 5 Minute Market Rundown
    • Stock Market Podcasts
    • View All
    • Daily Market Newsletters
    • Opening View
    • Midday Market Check
    • Market Recap
    • View All
  • Premium
    • All Trading Services
    • Most Popular Services
    • Elite Trader
    • Quick-Hit Trader
    • Lightning Trader
    • Ultimate Trader
    • View All
    • Directional Trading
    • Options Under $5
    • Leverage
    • Weekly Options Trader
    • Event Trader
    • PowerTrend
    • Schaeffer's Players
    • Overnight Trader
    • View All
    • Advanced Trading Alerts
    • Wealthbuilder
    • Premium Trader
    • Hedge Hunter
    • Volatility Trader
    • Weekly Volatility Trader
    • View All
    • Weekend Alert
    • Weekend Player
    • Weekend Trader
    • Weekend Trader Alert
    • Expiration Week Countdown
    • Weekly Options Countdown
    • View All
    • Newsletter Trading Services
    • Master Portfolio
    • The Option Advisor
    • Schaeffer's Daily Bulletin
    • View All
    • Courses & Education
    • Getting Started with Options
    • View All
  • Options 101
  • Deals
    • Deal of the Week
    • Broker Center
    • Free Trial
  • Log-In
  • Search
>> PODCAST: tastylive's Jermal Chandler makes sense of the stock market<<

The Greeks


The Greeks are a set of metrics that determine why, how, and when your option's value will change. Delta is probably the most commonly cited Greek -- but don't think you can become a stellar options trader without learning the ins and outs of theta, too.

Below, you'll find a quick primer on the Greeks. For more in-depth information on each of these metrics, pay a visit to the Option Greeks entry in our Key Option Concepts section.

Beta. A measure of how a stock moves more or less in relation to the movement of a broader market index.

Delta. The percentage of an underlying stock's gain or loss  that will translate into the corresponding option's gain or loss.

Gamma. The unit change in the delta of an option for each point change in the price of the underlying stock or index.

Rho. The sensitivity of an option to a change in interest rates.

Theta. The loss in value an option will experience due to the passage of time. As a quantification of time decay, theta is usually expressed on a per-day basis.

Vega. The change in an option's price based on the change in its implied volatility, expressed in dollar terms.

0

0

0

Partnercenter


 

About Schaeffer's
Who We Are
More about Bernie
Business Hours
Schaeffer's Sitemap
How Can We Help?
Access Your Account
Contact Us
Privacy Policy
Legal Notices
Premium Products
Trading Services
Educational Programs
Deal of the Week
Free Market Newsletters
Let's get social:
Twitter logo Facebook logo Instagram logo YouTube logo Linkedin logo
© 2021 Schaeffer's Investment Research, Inc.
5151 Pfeiffer Road, Suite 450, Cincinnati, OH 45242
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.