Options Greeks Cheat Sheet
Quick reference for what each Greek measures and how to use them in real trading decisions.
Quick reference table
| Delta | Price change per $1 move in underlying. ATM call ≈ 0.5 |
| Gamma | Rate of change of Delta. Highest ATM near expiration. |
| Theta | Time decay per day. Negative for buyers, positive for sellers. |
| Vega | Sensitivity to implied volatility (IV) |
| Rho | Sensitivity to interest rates. Mostly irrelevant short-term. |
| Long calls | Long delta, gamma, vega. Short theta. |
| Long puts | Short delta, long gamma, vega. Short theta. |
| Short calls | Short delta, gamma, vega. Long theta. |
| Short puts | Long delta, short gamma, vega. Long theta. |
| Greeks priority | Delta > Gamma > Theta > Vega > Rho |
Quick setups
- Long premium = pay theta, benefit from vol expansion. Best in low-IV regimes before catalysts.
- Short premium = earn theta, hurt by vol expansion. Best in high-IV regimes (IV Rank > 50) in non-trending markets.
- Earnings plays = high vega exposure. IV usually elevated pre-earnings, collapses post. Long options BEFORE earnings often lose despite directional accuracy due to IV crush.