Learn institution Trading Part -3

How Option Prices Move – The Greeks
Delta: Sensitivity to price change in the underlying

Gamma: Rate of change of Delta

Theta: Time decay – loss in value as expiry nears

Vega: Sensitivity to Implied Volatility (IV)

Rho: Interest rate sensitivity

Understanding Greeks helps manage risk, adjust positions, and time trades better.

4. Why Traders Choose Options
Leverage: Control large positions with limited capital

Risk Control: Limited loss in buying options

Flexibility: Multiple strategies (bullish, bearish, neutral)

Hedging: Protect existing stock portfolios

Income Generation: Through writing options like covered calls