Options Greeks. Theta is part of the group of measures known as the greeks which are used in options pricing. Learn how to use the options greeks to understand changes in option prices.
We ll explore the key greeks. For instance the delta measures the sensitivity of an. The greeks are utilized in the analysis of an options portfolio and in sensitivity analysis of an option or portfolio of options.
Remember options give the buyer the right to buy or sell an underlying asset at the strike price.
As a premium of options gets affected by many variables it requires to understand how the price of option moves. Option greeks are financial measures of the sensitivity of an option s price to its underlying determining parameters such as volatility or the price of the underlying asset. Learn how to use the options greeks to understand changes in option prices. As a premium of options gets affected by many variables it requires to understand how the price of option moves.
