RECENT NEWS
Greeks Vow Overhauls on Budget
Wall Street Journal  Oct 26  Comment 
Greece's newly elected government vowed to overhaul public finances after Fitch downgraded the country's sovereign-credit rating and questioned the accuracy of its accounting.
Greeks Prepare to Elect Socialists
Wall Street Journal  Sep 30  Comment 
Five years after Greeks chose a government to cut taxes, privatize big companies and tackle corruption, they are preparing to throw it out in elections.
Greeks Prepare to Elect Socialists
Wall Street Journal  Sep 29  Comment 
Five years after Greeks chose a government to cut taxes, privatize big companies and tackle corruption, they are preparing to throw it out in elections.
Make Profitable Market Moves Using ‘Options Greeks’
Contrarian Profits  Aug 3  Comment 
When you hear traders talk about the Greeks, they don’t mean Plato or Socrates. They’re talking about the series of calculations that are used to determine the value of options. The calculations are designated by various letters of the...
Make Profitable Market Moves Using “Options Greeks”
Penny Sleuth  Aug 3  Comment 
When you hear traders talk about the Greeks, they don't mean Plato or Socrates. They're talking about the series of calculations that are used to determine the value of options. The calculations are designated by various letters of the Greek...
Greeks Should Stop Wasting Energy Moaning About Elgin Marbles
Bloomberg  Jun 22  Comment 
Far be it from me to advise Greek ministers. Nevertheless, they are getting their tactics wrong over the interminable saga of the Elgin Marbles.
Introduction to the Options Greeks
Stock Trading To Go  May 27  Comment 
For trading options in the stock market a set of Greek letters, collectively known as ‘the Greeks,’ are used to measure risk. We take a closer look at Delta, Gamma, Theta, and Vega.
Managing Greeks, Not Trades
Condor Options  Apr 15  Comment 
Here's an insightful comment sent along by long-time member B. D.: I have really learned so much about iron condor trading by seeing how you adjust the portfolio over time. If this month ends up about break-even, I actually think it will be one...
Greeks Stage Walkout Tied to Summit
New York Times  Apr 2  Comment 
Thousands of Greeks went on strike Thursday, crippling the country in an action that labor unions said was timed to coincide with the Group of 20 summit in London.
Beware of Greeks Bearing Formulas
Simoleon Sense  Nov 8  Comment 
I take the title of this post from Peter Klein of the Organizations & Markets blog. Peter, wrote an excellent post on the complexity of risk models and their recent spectacular failure (which can be found here). In addition to linking to...
Suggest other news sources for this topic
Suggest a News Source
Topic
Top news source/blog that we're missing
Why do you recommend this news source?
Close 
Thanks for your suggestion!
 
RELATED WIKI ARTICLES

Related Articles

more ▼WIKI ANALYSIS
This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition.
 
TOP CONTRIBUTORS
Director
GnomeOfZürich

Greeks are used in the context of options and derivatives trading to measure the risks of taking a position. There are five greeks, which are delta, gamma, theta, vega, and rho. Each "Greek" measures a different aspect of the risk in an option position, and corresponds to a parameter on which the value of an instrument, or portfolio of financial instruments, is dependent. Interestingly, despite vega not being a Greek letter, it is still considered one of the greeks.

Five key areas of option pricing can be analyzed using the greeks: the effects of the passage of time (theta), the effect of changes in the price of the underlying asset (delta), the effect of changes in the underlying with respect to the rate of change of delta (gamma), the effects of interest rates (rho), and the effects of volatility (vega), .

The greeks are derived from the Black-Scholes formula, which helps calculate a fair market value of an option by incorporating multiple variables such as price of the underlying security, volatility, time value, and strike price.

Neutralizing the effect of each variable usually requires a substantial buying and selling across multiple securities within a portfolio. Due to the high transactions costs involved with such a large volume of trading, many traders only make periodic attempts to rebalance their options portfolios.

Retrieved from "http://www.wikinvest.com/wiki/Greeks"
Wikinvest © 2006, 2007, 2008, 2009. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki