Learn how options move
Nine short chapters, about 51 minutes in all. They start with what an option is and end with building your own strategies, with each of the Greeks in between.
Every diagram is live. Drag the stock price or wind the clock forward and the numbers are recalculated with the same model the rest of GreekGeek uses on real quotes.
- 1What an option isA contract to buy or sell 100 shares at a fixed price before a set date, and why that right costs money.5 min
- 2Calls and putsWhat each one pays at expiry, drawn as a payoff chart, from the buyer's side and the seller's.6 min
- 3Delta: the slopeHow much an option moves when the stock moves $1, and why traders also read it as rough odds.6 min
- 4Gamma: the curveHow fast delta itself changes, and why it spikes at the strike as expiry closes in.6 min
- 5Theta: time decayWhat it costs to hold an option for one more day, and why the cost speeds up in the final weeks.5 min
- 6Vega and implied volatilityHow the market's expected swings set an option's price, and what happens to that price after earnings.7 min
- 7Rho: interest ratesThe Greek you can mostly ignore, except on options that run for a year or more.4 min
- 8Reading an option chainA walk through every column of a chain, from bid and ask to open interest and implied volatility.6 min
- 9Combining options into strategiesCovered calls, spreads and straddles, built from the calls and puts you already know.6 min
New to options? Start at chapter 1. If you already know calls and puts, you can skip ahead to delta.
Want the formulas behind the diagrams? Read how GreekGeek calculates its numbers.