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Options Greeks Explained: Delta, Gamma, Theta, Vega

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Options Greeks: Delta, Gamma, Theta, Vega

  • Options have Greeks: Delta, Gamma, Theta, Vega
  • Delta = option price change per underlying move
  • Delta 0.5 = half price gain per point
  • Gamma = delta's rate of change
  • High gamma = rapid position shifts
  • Theta = time decay, daily value loss
  • Time works against buyers
  • Vega = volatility sensitivity
  • Implied volatility rise affects prices

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