 What's going on guys pressed in here with X trades and today we are going to be talking about options Greeks What they are and what they do? so the first options Greek is pretty important it's Delta and Delta is the total amount the option price is expected to move based on a $1 change in the underlying security so In easy terms, it's basically how much your option will move when the Underline stock price like the share price goes up a dollar So for example, if you had a August 20th put with a Delta of negative 26.8 you you would lose $26.80 on the contract price if the stock price goes up by $1 and vice versa with a Call if you had an August 20th call the Delta would be positive 26.8 So you should gain $26.80 if the stock price goes up by a dollar Out of the money contracts have lower Delta Obviously like when you're playing Super out of the money weeklies or anything like that. You'll notice that what if the stock price goes up by a dollar then You don't necessarily get the move you would as if you were way closer to at the money or in the money So that brings us to the next point at the money Delta and in the money is higher Delta because in the money the contract is basically moving with the stock price itself and at the money is like the Contracts are pricing in that it could go in the money because it's so close so The Delta is higher factoring in for that possibility possibility of going in the money So the next options Greek is gamma not necessarily too important it kind of is a Way to see the future of what the Delta could be so gamma is always positive Measures the rate of change in the Delta for each one point increase in the underlying asset So it's kind of like futures for Delta Not necessarily anything too important to worry about there Theta is one of the most important options Greeks that we will talk about and this this is one that beginners to options trading or Experienced shares shares traders coming into options. They have a big problem with because either a beginning options trader doesn't They just think like okay I make money when this when the share price goes up on a call and when the share price goes down on a put But there's these options Greeks that goes into the price itself that Shows that there's way more factors than just the underlying share price going up and down that changes a options price so We have theta which is time decay of an option So a options contract is a decaying asset every second every day. It is decaying so it explains the effect of time on the premium of the option and You'll see it. It'll be like theta and negative zero point two so that shows every day that goes by that contract is worth $20 less essentially your $5 less depending on whatever the theta is and Fairly easy to explain a contract with further out theta or a contract with further out expiry excuse me is A lower theta because you have more time on the contract so The theta will be much lower compared to when you're playing say weeklies or a monthly the theta won't be too bad But when you're playing a weekly the theta will be pretty high because like you're getting near that expiration date and So not too many people are gonna want to buy it and it's About to expire worthless. So the the price of it or the theta The amount that the contract loses value each day is gonna go up and up as you get closer to the expiration date Vega is Not necessary not necessarily volatility. So volatility measures fluctuations in the underlying asset That's things like VXX VIX all of those sort of volatility tickers Vega measures the sensitivity of the price of an option to changes in volatility. So Basically an increase in volatility Causes an increase in all options prices because options basically thrive off of volatility in essence when a stock moves a lot like contracts will All contracts will receive a boost but Vega measures the volatility for that option and so If the stock price were to move in the right direction and it's volatile it Vega will be higher whereas if there's volatility and the stock price is moving in the wrong direction per se The Vega will be lower even though the contract price may change a little bit because the share price is volatile regardless And then each contract has different Vega Vega Results in different effects of volume per con or volatility per contract. Sorry It's just yeah again the volatility of the share price in Whichever direction it's going for that contract, it'll benefit it more if it's going in the correct direction That you want it to go And another one that's not too important is row row and gamma aren't necessarily important But I mean they play a factor. There's multiple other Greeks such as lambda and Some other ones But these are like the main five. It's mainly the main three But row and gamma kind of get thrown in there but just a good good rule of thumb is to pay attention to theta Vega and the Delta so row is the measure measure of an options sensitivity to changes in interest rates so options gain Slash lose in price dependent on a 1% change in interest rates so for example a call option with 0.10 or $10 row will gain $10 with a 1% increase in interest rates Pretty pretty easy to understand. I mean not something you have to be too worried about because Everyone kind of pays attention to interest rates anyways, but it's just how interest rates factor into when you're playing options because they have a factor in shares and Other companies themselves. So it plays a factor and a role in options trading as well and so Here's just a little snapshot overlooking the Five main options Greeks. I you can screenshot this or Print it out. It's you can get a picture of like options Greeks on Google images or anything and print it out put it on your wall. It's always good to have like chart patterns or Options Greeks and stuff like that just because there's so many Greeks There's so many chart patterns that printing them out and putting it on your wall so that you can like double-check yourself with the right name Double-check the pattern itself is always always good to have on hand or on your wall in your office If that's where you trade So here's just a little overview and you can pause it read over everything again, but Yeah, that's options Greeks. Thank you for watching and Have a good one