Options Flashcards
1
Q
a. Delta
A
gain/loss if stock goes up/down $1
2
Q
b. Gamma
A
rate of change between delta and the stock’s price
i. Every $1 is how much delta changes
ii. Delta gets changed by the gamma
iii. How much delta is going to change
3
Q
c. Theta
A
time decay of an option
i. Theta is per day
4
Q
d. Vega
A
how sensitive options are to changing volatility
