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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.
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.
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.
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...
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...
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.
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.
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...
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.
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...
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TOP CONTRIBUTORS

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.

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