Tell the world how much you love tastynation! Vote tastytrade for Startup of the Year! 

Options Crash Course: The Greeks hero image

Options Crash Course: The Greeks

In the Greeks Crash Course, you'll learn how we use the option Greeks as tastytrade. Specifically, you'll see how to improve your portfolio returns or reduce your portfolio risks with all Option Greeks that are relevant to you as a trader.

Delta in Options Explained
Jul 2, 2021

Delta is without question the Greek that we use most often at tastytrade.

Theta in Options Explained
Jul 2, 2021

With its ability to quantify the time decay of our positions, Theta allows us to position our portfolio into high probability outcomes without relying on direction.

Vega in Options Explained
Jul 2, 2021

Since volatility is such an important part of the entire tastytrade process, understanding the intuition behind Vega is critically important as an active trader.

Gamma (and Gamma Risk) in Options Explained
Jul 2, 2021

A second-derivative of the Black-Scholes Model, Gamma shows us how Delta itself will change as the stock price changes.

Rho in Options Explained
Jul 2, 2021

With Rho capturing how an option price will change as interest rates change, it makes sense that Rho is far less important than any of the other Greeks.

Charm in Options Explained
Jul 2, 2021

With a direct link to premium decay and portfolio returns, understanding Charm can take your trading to the next level.

Color in Options Explained
Jul 2, 2021

Color is a second-order derivative of the Black-Scholes Model that measures how Gamma changes over time.

Vomma in Options Explained
Jul 2, 2021

As another higher-order derivative of the Black-Scholes Model, Vomma measures how Vega changes when implied volatility changes.

Vanna in Options Explained
Jul 2, 2021

As Vanna measures how delta changes when implied volatility changes, it offers the unique perspective of how our directional biases will shift when volatility shifts.

Speed in Options Explained
Jul 2, 2021

As a third-derivative of the Black-Scholes Model, Speed measures how Gamma changes with changes to the stock price.

tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on

tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”). tastytrade is a trademark/servicemark owned by tastytrade.

Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.

Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information on this site should be considered general information and not in any case as a recommendation or advice concerning investment decisions. The reader itself is responsible for the risks associated with an investment decision based on the information stated in this material in light of his or her specific circumstances. The information on this website is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading in derivatives and other financial instruments involves risk, please read the Risk Disclosure Statement for Futures and Options. tastytrade is an investor in Small Exchange, Inc.

© copyright 2013 – 2021 tastytrade. All Rights Reserved. Applicable portions of the Terms of use on apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastytrade’s podcasts as necessary to view for personal use.