What Are Option Greeks? Delta, Gamma, Theta, Vega & Rho

Option Greeks are used to assess how an option’s price may respond to changes in factors such as the:

Underlying asset price
Time remaining until expiry, and
Volatility.

As per general market understanding, the primary types of Greeks are Delta, Gamma, Theta, Vega, and Rho. If we talk about the Options Greeks for beginners, the most commonly used are Delta, Theta, and Vega. Let’s understand them in detail:

Greek	What it Measures
Delta	Sensitivity of an option’s price to changes in the underlying asset’s price
Gamma	Change in Delta when the underlying asset’s price changes
Theta	Sensitivity to the passage of time
Vega	Sensitivity to changes in implied volatility
Rho	Sensitivity to changes in interest rates

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What are Option Greeks?

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