Meet "The Squad": The Greeks
The Greeks are the mathematical measurements that tell us exactly how much an option's price will change when market factors shift.
Delta (Δ)
Price Sensitivity
Measures price change for every $1 move in stock.
Theta (Θ)
Time Decay
Value lost each day as expiration nears.
Gamma (Γ)
Rate of Change
How fast Delta accelerates.
Vega (ν)
Volatility Impact
Price change per 1% change in IV.
Rho (ρ)
Interest Rates
Price change per 1% interest rate change. Usually least important for short term.
The Time Decay Curve
Why "30 Days" is often considered the magic number.
What Theta Decay Tells You
Theta decay is not linear. It accelerates as expiration approaches. This creates a "cliff" where option value drops rapidly.
90+ Days Out
Slow decay. Safe zone for buyers.
30 Days Out
Decay accelerates visibly.
< 7 Days The "Cliff"
Value burns at max speed.
Option Simulator
Real-time Black-Scholes Model