None Theta: That is the amount of time left until the option expires. The more time that s left, the higher is the options price. After all, it means there is more time for the option to expire in the money.
No Delta: Measures the change in the options price given the change in the underlying asset s price. Imagine it as the chance the option has of being in money at expiration. When an option is at the -money, delta is 0.5. That also means when the underlying asset prices moves up by $1, a call option that was at the money will go up $0.50. The higher the price, the higher the delta for a put and vice versa for a call option. Delta also rises with volatility because there's an increased chance that options are in the money at expiration. The delta scores from 0 to 1.0 for calls and from - 1.0 to - 0 for put.
Delta isn t a static number. How it changes depends on how out-of-the-money or how in-the - money the option gets As well when time becomes closer to expiration that is, when delta falls near theta to 0 delta also falls. The change in delta is called gamma.
None Vega: This tracks what the market forecasts as volatility in other words, the standard deviation in the underlying asset in the time until expiration. The higher the volatility in the underlying asset, the more likely option is expected to become profitable and therefore becomes more expensive. What s interesting to note is that implied volatility is usually a plug number. That is, it is calculated using all the other measures above and the premium of the option in the market to come up with what the market expects the underlying asset volatility to be. In a stroke of genius, this is the greek that will come to life the most. For options traders, they often state an option premium by its implied vols rather than its dollar or bitcoin amount as it offers a convenient way to standardize different options on the same assets.