Understanding The Options Greeks - Delta, Gamma, Theta, Vega, and IV.

The 'Greeks' are the collective term traders use for Delta, Gamma, Vega, and Theta. Delta reflects how much an option price will move for every $1 change in the underlying asset. Delta is also used to determine the likelihood of an option expiring in the money. Gamma provides us with a better understanding of how quickly Delta will change when the underlying assets move and how quickly we need to adjust our positions. Gamma is a valuable tool that helps determine the stability of Delta.