Using Option Greeks: Theta
How sensitive an option is to the passage of time is called “theta.” In this series we will be looking at theta and will discuss why option traders pay attention to theta.
How sensitive an option is to the passage of time is called “theta.” In this series we will be looking at theta and will discuss why option traders pay attention to theta.
Delta is a measure of the rate of change in an option’s price for a $1 move in the underlying stock or index. In this article we help you understand the basics of delta and why traders pay attention to delta.