Option Greeks

This video familiarizes traders with a set of Greek risk factors used to monitor a portfolio’s profile. It explains the five key greeks:

1. Delta: The relative change in an option’s price for a given change in the underlying asset.
2. Gamma: The rate of change of delta for a given change in the underlying asset’s price.
3. Theta: The relationship between time and the price of an option.
4. Vega: The change in an option’s price due to a change in its implied volatility.
5. Rho: AN option’s sensitivity to interest rates.