The price of an Option depends on certain factors like price and volatility of the underlying, time to expiry etc. The Option Greeks are the tools that measure the sensitivity of the option price to the above-mentioned factors. They are often used by professional traders for trading and managing the risk of large positions in options and stocks. These Option Greeks are as under: Delta: is the option Greek that measures the estimated change in option premium/price for a change in the price of the underlying. Gamma: measures the estimated change in the Delta of an option for a change in the price of the underlying. This is the second level derivative. Vega: measures the estimated change in the option price for a change in the volatility of the underlying and used actively by volatility traders. Theta: measures the estimated change in the option price for a change in the time to option expiry and this used commonly by option sellers as they play for time value. Rho: measures the estimated change in the option price for a change in the risk free interest rates.

Bhavik Nehruanswered.Delta:is the option Greek that measures the estimated change in option premium/price for a change in the price of the underlying.Gamma:measures the estimated change in the Delta of an option for a change in the price of the underlying. This is the second level derivative.Vega:measures the estimated change in the option price for a change in the volatility of the underlying and used actively by volatility traders.Theta:measures the estimated change in the option price for a change in the time to option expiry and this used commonly by option sellers as they play for time value.Rho:measures the estimated change in the option price for a change in the risk free interest rates.