Unit 1: Greeks
Option Greeks
Understanding the Basics Imagine you've bought an option contract. This contract gives you the ri...
Summary
1. Delta (Δ) – Measures Price Sensitivity What it tells you: Delta shows how much the option pri...
Formula sheet
Summary of Correct Formulas: Delta (Δ): Measures sensitivity to price changes. Thet...
Numerical example
Let's work through a complete numerical example for each Greek (Delta, Theta, Gamma, Vega, and Rh...
Relationship and Comparison Among Stock Greeks
The Greeks aren't independent; they dance together! Understanding their relationships is key to ...
Delta Hedging and Gamma Hedging
Managing Your Option Risks Delta hedging and Gamma hedging are strategies to reduce the risk of y...
Making a Portfolio Delta Neutral
The Art of Balance Creating a Delta-neutral portfolio is like balancing a seesaw. You want to pos...
Gamma Neutral
Shielding Your Portfolio from Delta's Mood Swings Gamma neutrality takes risk management a step f...
Delta Positive Gamma Neutral
A Specific Portfolio Configuration A "Delta Positive, Gamma Neutral" portfolio is a specific type...
Gamma Positive Delta Neutral
Profiting from Big Swings, Regardless of Direction A "Gamma Positive, Delta Neutral" portfolio is...