Option greeks

For those of you trading options, option greeks must be familiar. Option Greeks are mathematical calculations generated as output of the pricing model along with theoretical option price for the inputs provided to the model. These greeks give us insight into how an option will be affected by stock price, interest movements, time, and volatility( these are the inputs provided to the pricing model).

In this post, I will briefly cover what are first-tier and second-tier option greeks and in the later posts will cover in detail each option greek and how they are affected by the factors considered above.