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# Options greeks

**Delta**is a measure of option price’s sensitivity to a one-point move in asset’s price (mathematically it’s the first derivative of an option’s price):

*ΔOptionPrice/$1(AssetPrice)*

**Gamma**is logically (it goes after delta), a second derivative. It denotes changes in delta per one point of asset’s price:

*ΔDelta/$1(AssetPrice)*

**Theta:**an immensely important greek. It’s how much an option changes in price per day, and it goes down as expiration moves closer. Below is a basic chart of an option’s value decaying.

**Vega**is option’s sensitivity to an underlying asset’s change in volatility. Usually, higher near the strike price recedes nearing expiration. A great visualization by QC is below:

Last modified 9mo ago