LEARN / GREEKS

Use the Greeks to describe options risk.

Greeks translate changes in spot, volatility, time, and rates into local sensitivities. They are risk measurements, not a complete P&L forecast.

The core Greeks

GreekWhat it measuresTrader use
DeltaApproximate price change for a one-unit spot moveDirectional exposure and delta hedging
GammaHow delta changes as spot movesConvexity and hedge instability
VegaSensitivity to implied volatilityVolatility exposure per vol move
ThetaTime decay under the modelCarry and passage-of-time effects
RhoSensitivity to interest-rate changesUsually smaller in short crypto maturities, but still model-dependent

Greeks depend on inputs

Greeks change with spot, strike, expiry, implied volatility, rate convention, and whether the option is a call or put. Near expiry or far from the money, small input changes can create large numerical differences. Always inspect the quote quality and solver status beside the Greek.

Why vega and gamma matter together

A long option can carry positive gamma and positive vega, but the exposure changes as spot moves and time passes. A trader studying a volatility surface should therefore ask both how IV may move and how the position's vega is distributed across expiry and delta buckets.

Practical workflow: inspect the chain, compare IV by delta, check liquidity, then use Greeks and scenarios to understand how a surface move could affect a position.

IVExplorer implementation

IVExplorer calculates Black-Scholes prices and Greeks in browser-side WebAssembly. The live terminal shows the values beside the option chain and ATM smile, while the educational views explain the assumptions behind them.