Browse the library
Topic
Greeks
8 guides in Finabase Learn
- Delta How much an option's price is expected to change for a $1 move in the underlying; also a rough probability of finishing in the money.
- Gamma The rate at which an option's delta changes for a $1 move in the underlying, highest for at-the-money options near expiry.
- Implied volatility The future volatility the market is pricing into an option, backed out from its premium with a pricing model.
- Option Greeks Delta, gamma, theta, vega and rho: measures of how an option's price responds to changes in price, time, volatility and rates.
- Option Greeks: delta, gamma, theta, vega and rho with examples What each option Greek measures, how to read delta, gamma, theta, vega and rho on a real position, and worked examples computed from the Black-Scholes model.
- Rho The option Greek measuring how much an option’s price changes for a one-percentage-point move in interest rates.
- Theta The option Greek that estimates how much an option’s price falls with each day that passes, all else equal; the measure of time decay.
- Vega The option Greek that estimates how much an option’s price changes for each one-point change in implied volatility.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.