Part 8 Trading Master Class

Option Greeks – The Key Metrics

Option pricing is influenced by several mathematical variables known as Option Greeks:

Delta: Measures how much the option price moves for every ₹1 change in the underlying asset.

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

Vega: Measures sensitivity to volatility; higher volatility increases premium.

Gamma: Tracks how much delta changes when the underlying price moves.

Rho: Measures sensitivity to interest rate changes.
Professional traders rely on these Greeks to manage risk and adjust positions according to market conditions.