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2nd Order Greeks

A second-order Greek is a second-order derivative of the option value with respect to some variable. Equivalently, it is the...

Second Order Greeks

A second-order Greek is a second-order derivative of the option value with respect to some variable. Equivalently, it is the...

Vanna

The sensitivity of vega (kappa) to a change in the underlying price of an option contract. That is, it is...

Gamma Cash

A form of gamma that measures the effect of change in delta cash in relative terms. Instead of absolute movements...

Delta Cash

A form of delta that quantifies the price change effect in relative terms. Instead of absolute movements (which are typically...

Delta Spread

A ratio spread which is constructed by involving deltas of options such that a neutral “overall” position is created. To...

Fixed Volatility

A volatility whose magnitude is theoretically set the same across different delta values of an option. The standard Black-Scholes model...

Flat Volatility

A volatility whose magnitude is theoretically set the same across different delta values of an option. The standard Black-Scholes model...

Gamma of Gamma

A third-order greek that measures the rate of change in the option gamma in response to a change in the...

Greeks

A series of calculations which determine and reflect different profiles of risk exhibited by a stock or asset underlying a derivative in response to changes in...