The Secret Language of Options Trading
In options trading, the Greeks are a set of risk measures—represented by Greek letters—that tell you exactly how an option’s price will react to changes in the market. Think of them as the dashboard of a car. They tell you your speed, your acceleration, how much fuel you have left, and what the weather is doing outside. Delta ($\Delta$): The Speedometer What it measures: Price sensitivity. The Question it Answers: “If the stock price moves $1, how much does my option price move?” ...