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Options Trading Greeks Cheat Sheet

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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Subba T
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195 views16 pages

Options Trading Greeks Cheat Sheet

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.

Uploaded by

Subba T
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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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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