Options Greeks

Options Greeks are a set of mathematical measures that describe how an option's price (premium) is expected to change in response to various market factors — the price of the underlying asset, time to expiry, implied volatility, and interest rates. The primary Greeks are Delta (sensitivity to underlying price), Gamma (rate of change of Delta), Theta (time decay), Vega (sensitivity to implied volatility), and Rho (sensitivity to interest rates). Together, the Greeks give options traders a comprehensive framework for understanding and managing the risk profile of an options position. In Indian F&O markets, Greeks are widely used by Nifty and Bank Nifty options traders to structure positions, hedge exposures, and assess how their portfolio will behave under different market scenarios.