Part 1 Candle Stick Pattern

Option Greeks – Measuring Risk Factors

Option traders use Greeks to analyze the sensitivity of an option’s price to various factors:

Delta: Measures the rate of change of option price relative to the underlying asset.

Gamma: Measures the rate of change of Delta itself.

Theta: Measures time decay — how much value the option loses as expiry nears.

Vega: Measures sensitivity to volatility.

Rho: Measures sensitivity to interest rates.

Understanding Greeks helps traders manage their portfolio risk effectively.