5 lessons about 18 minutes 10 quick checks final check: 8 questions Free, no sign-up
The five sensitivities that describe how an option's price behaves.
Your progress0/5 lessons
By the end you will be able to
- Use delta to estimate an option's response to a $1 stock move, and as a moneyness scale.
- Explain how gamma changes delta, and why it peaks near the money close to expiry.
- Estimate daily time decay with theta and repricing from volatility with vega.
- Explain when rho matters and when it can be set aside.
Options Band · Course completion record
The greeks
completed all 5 lessons and passed the final check
A record of self-study kept in this browser. It is not an accreditation, licence or qualification.
Syllabus
work through in order; each lesson ends with a short check- ✓ DeltaHow much an option's price moves per one-dollar move in the stock, and why traders also use it as a moneyness scale. 3 min
- ✓ GammaThe rate at which delta itself changes as the stock moves — the curvature behind an option's price response. 3 min
- ✓ ThetaThe model's estimate of how much value an option loses per day from the passage of time alone, all else equal. 3 min
- ✓ VegaHow much an option's price changes when implied volatility moves by one percentage point. 3 min
- ✓ RhoHow much an option's price changes when interest rates move by one percentage point — the quietest of the greeks. 3 min
- ★ Final check8 questions · pass mark 6/8 · unlocks when every lesson check is done 4 min
Your progress is saved in this browser only; clearing site data resets it. Educational content only: nothing in these courses tells you what to trade. Time estimates assume about 200 words a minute.