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  • Options Trading Greeks Cheat Sheet

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    Subba T
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    This document outlines the risks associated with various Greek letters used in options trading. Delta represents price risk and shows how much an option's price will change with a $1 or $7 move in the underlying stock price. Gamma shows how delta will change with a $1 movement in the stock price. Theta represents time risk and shows how an option's price will decay over a number of days. Vega represents volatility risk and shows how an option's price will change as volatility increases or decreases. Rho represents interest rate risk and how an option's price will be affected by changes in interest rates.

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    Options-Trading-Greeks-Cheat-Sheet

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    This document outlines the risks associated with various Greek letters used in options trading. Delta represents price risk and shows how much an option's price will change with a $1 or $7 move in the underlying stock price. Gamma shows how delta will change with a $1 movement in the stock price. Theta represents time risk and shows how an option's price will decay over a number of days. Vega represents volatility risk and shows how an option's price will change as volatility increases or decreases. Rho represents interest rate risk and how an option's price will be affected by changes in interest rates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    25 views16 pages

    Options Trading Greeks Cheat Sheet

    Uploaded by

    Subba T
    This document outlines the risks associated with various Greek letters used in options trading. Delta represents price risk and shows how much an option's price will change with a $1 or $7 move in the underlying stock price. Gamma shows how delta will change with a $1 movement in the stock price. Theta represents time risk and shows how an option's price will decay over a number of days. Vega represents volatility risk and shows how an option's price will change as volatility increases or decreases. Rho represents interest rate risk and how an option's price will be affected by changes in interest rates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 16

    Greek Your Risk

    Delta Price risk


    Gamma Price risk
    Theta Time risk
    Vega Volatility risk
    Rho Interest rate risk
    YOUR DELTA PRICE UP $1 PRICE DOWN $1 PRICE UP $7 PRICE DOWN $7

    3 $3 -$3 $21 -$21

    20 $20 -$20 $140 -$140

    -5 -$5 $5 -$35 $35

    -42 -$42 $42 -$294 $294


    NEW DELTA AFTER 1 PT NEW DELTA AFTER 1 PT
    YOUR DELTA GAMMA MOVE HIGHER MOVE LOWER
    YOUR THETA 1 DAY 3 DAYS 15 DAYS 45 DAYS
    STOCK PRICE VOLATILITY
    YOUR VEGA STOCK PRICE GOES UP STOCK PRICE GOES DOWN VEGA DOWN 2% VEGA UP 2%
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