Been trading for a while but always struggled with understanding the greeks properly. Delta shows how much the option price moves with the stock. Gamma shows how delta changes. Theta is time decay eating your premium. Finally clicked for me.
Theta destroyed my first options trades because I bought weeklies on Friday afternoons like an idiot.
Now I check theta before every trade. Lost $340 on Apple calls that expired worthless even though I was right about direction.
Time decay is brutal when you’re new.
Good breakdown. Most traders overthink the Greeks but you nailed the basics. Focus on delta and theta first since they impact your trades the most. Delta tells you directional risk and theta shows how fast your option bleeds value each day. Once you master those two, gamma becomes useful for managing position size adjustments. Keep it simple and profitable.
Gamma becomes more important when holding positions near expiration dates. This was learned the hard way when delta shifted faster than expected on short-term trades.
Greeks change throughout the day. Checking them once isn’t enough. Price movements can flip your risk profile quickly, especially with mobile trading where constant monitoring isn’t possible.
Rho measures interest rate sensitivity. Often ignored but matters for longer expiry options. All Greeks work together - don’t trade on just one.
Vega is crucial too. It measures how options prices change with volatility.