Tag: Theta

Introduction: In the intricate world of options trading, understanding the "Greeks" is essential for making calibrated decisions—particularly when it comes to choosing the best strike price. By leveraging the Greeks, which are the key risk measures involved in options pricing, traders can gain insights into how sensitive an option is to time, volatility, and changes in the underlying asset price. What Are Option Greeks?: Option Greeks are mathematical measures that describe the sensitivity of an option's price to certain variables. The primary Greeks are Delta, Gamma, Theta, Vega, and Rho. Let's briefly...