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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.

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