Greek Letters (in options)

Greek letters in options trading are symbols representing key risk measures and sensitivities. Delta measures how much an option's price changes with the underlying asset's price. Gamma indicates how delta shifts when the asset price moves. Theta reflects the option's time decay, showing how value decreases as expiration approaches. Vega measures sensitivity to changes in market volatility. Rho indicates how interest rates affect option prices. Traders use these Greek letters to assess risk, manage positions, and make informed trading decisions by understanding how different factors influence option values.