Part 1 Introduction to Candlestick Patterns

The Greeks: Heart of Option Trading

The Greeks measure how options change with market conditions.

1. Delta

Measures how much the premium moves compared to the underlying.

Call delta = +ve

Put delta = –ve

2. Theta

Measures time decay.

Always negative for buyers

Positive for sellers

3. Vega

Measures sensitivity to volatility.
High volatility = expensive options.

4. Gamma

Shows how Delta changes.
High Gamma = fast premium movement.