Sensitivity Greeks

There are different kind of risks involved in taking a position in an option contract. These risks are quantified in certain metrics, called the ‘Greeks’ (because of the Greek symbols). Traders use different Greeks to manage their portfolio and assess the option’s risk. There are five basic Greeks that you should know, namely the Delta, Gamma, Theta, Vega and Rho. For a given option price, , the Greeks represent the following.