Table of Contents
### Chapter 6 Major Learning Points

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In this chapter we’ve learned the basics of the Greeks and understand that they are purely sensitivities of options to the various factors that form part of the various options pricing models.

Greek | Quick definition |
---|---|

Delta | The speed of the option price over the speed of the underlying asset price. Can also be viewed as the probability of an option expiring In the Money. |

Gamma | Sensitivity of delta relative to the underlying asset price movement. Can also be viewed as the odds of a change in delta. |

Theta | Option price sensitivity to Time Decay. When theta is positive, Time Decay is helping the position. When theta is negative, Time Decay is hurting the position. |

Vega | Option price sensitivity to the underlying stock price volatility. When vega is positive, volatility is helping the position. When vega is negative, volatility is hurting the position. |

Rho | Option price sensitivity to interest rates. When rho is positive, increasing interest rates are helping the position. When rho is negative, increasing interest rates are hurting the position. |