Option Greeks Explained in Simple Words – A Beginner’s Guide

If you trade options, but the words Delta, Gamma, Theta, Vega scare you — don’t worry. These are not rocket science. Option Greeks are simply tools that tell you how an option’s price will change under different conditions.

Let’s decode them in the most beginner-friendly way.

🔹 What are Option Greeks?

They are metrics that help you understand how sensitive an option is to:

Price change of underlying (Delta)

Time decay (Theta)

Volatility changes (Vega)

Price acceleration (Gamma)

🤖 4 Main Option Greeks You Should Know:

Delta (Δ) – Shows how much the option premium will move if the stock moves ₹1.

Example: Delta of 0.6 means premium increases ₹0.60 if stock goes up ₹1.

Theta (Θ) – Time decay. Option premium reduces every day as expiry nears.

More theta = faster decay.

Vega (ν) – Measures how much premium changes with 1% volatility change.

Useful before events or earnings.

Gamma (Γ) – Measures how Delta changes as price moves.

High Gamma = Delta changes fast = Risky!

🏋️ How Retail Traders Use Greeks:

Choose right strike with Delta + Theta logic

Avoid buying high Vega options (they decay after event)

Use Gamma to avoid volatile strikes

🔎 Pro Tip from Mentor Aditya Jain:

"Understanding Greeks means understanding how your premium breathes every second. Don’t just buy – know what you’re buying."

📅 We Teach Greeks Live on Real Option Charts

Our students learn how to choose strike price, track decay, and manage position size using Greeks logic live in every F&O session.