{"id":45189,"date":"2023-03-23T14:40:20","date_gmt":"2023-03-23T13:40:20","guid":{"rendered":"https:\/\/staging.captrader.com\/glossar\/options-griechen\/"},"modified":"2023-03-23T14:40:20","modified_gmt":"2023-03-23T13:40:20","slug":"options-greeks","status":"publish","type":"glossar","link":"https:\/\/www.captrader.com\/en\/glossar\/options-griechen\/","title":{"rendered":"Options-Greek"},"content":{"rendered":"

Among option traders, \"Greeks\" are key figures that allow conclusions to be drawn about changes in the option price, depending on various parameters. Who Options<\/a> should have at least a basic understanding of the most important options greeks. Understanding the exact mathematical derivations and formulas is not mandatory. In this article you will learn what the Greeks are used for in options, what the most important Greeks are and what their significance is.<\/p>\n\n\n\n

What are the \"Greeks\" in options trading?<\/h2>\n\n\n\n

Greeks are option ratios calculated using option pricing models and named after Greek letters. The most commonly used Greeks are Delta<\/a>, Gamma<\/a>, theta and vega. With these four key figures, the change in the option price as a function of a change in the price of the underlying (delta), time (theta) and the implied volatility<\/a> (Vega) as well as the change of the delta in case of a movement of the underlying (Gamma), under otherwise constant circumstances.<\/p>\n\n\n\n

The Greeks can be found in the option chain in the Option Trader of the Trader Workstation (TWS). To do this, you may need to adjust the columns.<\/p>\n\n\n\n

\"CapTrader_<\/figure>\n\n\n\n

Delta<\/h2>\n\n\n\n

The Delta<\/a> is the most frequently used key figure and plays an important role both in the selection of the option's strike price and in risk management. The delta indicates how much the option price changes when the price of the underlying changes by one unit.<\/p>\n\n\n\n

For example, a delta of 0.5 or 50 (percent) means that the option price will (theoretically) increase by $5 if the price of the underlying increases by $10. In reality, there will almost always be deviations, since other factors affect the option price at the same time (time, volatility) and the individual Greeks can only take into account the change in each case under otherwise constant circumstances. (However, constant circumstances do not exist in reality, but only in theory).<\/p>\n\n\n\n

The delta is also often used to estimate the probability that an option will expire in the money. Even if this interpretation is not academically correct (according to the Black-Scholes model, the Zeta ratio is necessary for this), it is common practice among option traders to use the delta for this purpose.<\/p>\n\n\n\n

Gamma<\/h2>\n\n\n\n

The Gamma<\/a> indicates how much the delta changes when the underlying moves by one unit.<\/p>\n\n\n\n

A gamma of 0.05, for example, thus means that the delta of an option increases from 0.3 to 0.35 if the price of the underlying increases by one dollar.<\/p>\n\n\n\n

Theta<\/h2>\n\n\n\n

The theta measures the change in the option price as a function of time, or the loss in value of an option, when the remaining term decreases by one day. For example, a theta of 0.02 or - 0.02 means that the option price (theoretically) falls from 0.5 to 0.48 as one day passes. Again, the multiplier of the option must be considered to determine the actual USD or EUR value. In the case of a stock option, the value of the option in this example would fall from USD 50 to USD 48.<\/p>\n\n\n\n

Vega<\/h2>\n\n\n\n

Vega represents the change in the option price as a function of implied volatility. The ratio expresses how much the option price changes when the implied volatility changes by one unit (or one percentage point). For example, if the implied volatility of a stock option increases from 30 % to 31 %, a Vega of 0.15 means that the option price increases by 0.15 USD or by 15 USD (multiplier of stock options = 100).<\/p>","protected":false},"author":7,"featured_media":0,"template":"","class_list":["post-45189","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/45189","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/7"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=45189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}