How it works
The Greeks isolate how each factor — underlying price, time, volatility — moves an option's price. Delta is the price change per unit move in the underlying, gamma is delta's rate of change, theta is the time decay per day, and vega is the price change per 1-point move in volatility.
FAQ
Q. Is a negative theta normal?
A. Yes — a long option position loses time value every day, so a negative theta is expected. For a short position, that decay works in your favor.
Q. What does a high gamma mean?
A. A high gamma means delta shifts sharply with even small moves in the underlying — commonly seen in near-the-money options close to expiry.