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Divergence Secrets

30
Option Greeks – The Heart of Option Pricing

Option Greeks mathematically measure how an option should behave.

1. Delta

Measures direction sensitivity.
Call delta: 0 to 1
Put delta: –1 to 0

2. Gamma

Measures change in delta.
High near expiry.

3. Theta

Time decay rate.

4. Vega

Sensitivity to volatility.

5. Rho

Interest rate impact (lowest impact).

These Greeks help traders build stable and predictable strategies.

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