Options Greeks
A set of risk measures (Delta, Gamma, Theta, Vega, Rho) that describe how an option's price changes relative to various factors.
Explained Simply
Delta: how much the option moves per $1 stock move (0.50 delta = $0.50 per $1). Gamma: how fast delta changes. Theta: daily time decay (options lose value every day). Vega: sensitivity to IV changes ($0.05 vega = $0.05 per 1% IV change). Rho: sensitivity to interest rates (usually negligible). Understanding Greeks is essential for options trading — they tell you exactly what risks you're taking.
How Tradewink Uses Options Greeks
Our GreeksEngine calculates real-time Greeks for all options positions using the Black-Scholes model (with py_vollib as the primary calculator and manual fallback). Portfolio-level Greeks are tracked to manage overall risk. The AI uses delta to estimate directional exposure, theta to assess time decay risk, and vega to gauge volatility exposure.
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