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The Greeks: Delta, Gamma, Theta, Vega
intermediate·8 min read·Tier 5
The four numbers that tell you how an option's price will move — with price, with time, and with volatility — explained without the calculus.
An option's price does not move one-for-one with the stock. It responds to several forces at once: the stock's price, the passage of time, and the market's expectation of future movement. The Greeks are the dials that measure each of those sensitivities. Professionals derive them with calculus, but you can trade with the plain-English version.
Delta and gamma: sensitivity to price
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