Stock market greek symbols

If you are looking for help trading options, look no further than the Greeks. Greeks are a set of mathematical calculations that are designed to help traders assess risk. They allow for the measurement of the impact that changes in various factors, such as time and volatility, have upon an options contract. While Greeks can be applied generally to other derivatives securities whose value depends on an underlying asset , they are most well known as a tool used by experienced options traders.

When it comes to the Greeks, the discussion begins with the most widely used of them all: This is the sensitivity of an options price to the change in the price of the underlying asset. For instance, delta would measure how much the theoretical value of a call option on XYZ Company stock would change, given a change in the value of XYZ stock.

In fact, many trading programs perform this calculation for you and it can be found in your Fidelity options trading platform for individual contracts.

How might a trader interpret delta? There are actually a few different ways to use it. For each dollar move in the underlying asset, the option price would approximately move by the delta. The delta for a put works similarly, but would be a negative number; as the price of the underlying asset decreases in value, the price of the option increases.

Many traders use delta in other ways as well. Yet another way to view delta is from a net position on the underlying security. For instance, if a trader holds a call contract with a delta of 0.

S&P Bull & Bear 3X ETF | SPXL, SPXS Funds | Direxion

Similarly, holding a put option or shorting a call, with a net delta of —0. Of course, the option value implied by delta is not an exact science. Delta simply implies a theoretical value.

Factors will influence the price of an option beyond the price of the underlying asset. Still, delta does serve as a very useful guide, depicting how sensitive to the underlying asset an option might be. Learning how to use delta as part of your options trading is important. You can learn a lot about how an option trades by observing Greeks, such as delta, for specific contracts over time.

Here are some helpful guidelines to get you started:. Gamma —This Greek is directly related to delta. Whereas delta will change based on a price move in the underlying asset, gamma is the rate of change, or sensitivity, to a price change in the underlying for delta.

Positive gamma accelerates gains and decelerates losses on options contracts; this quality can be found in long calls and long puts. Alternatively, negative gamma decelerates gains and accelerates losses, and is a characteristic of written calls and puts.

An increase in the implied volatility i. Vega can be an extremely useful Greek, particularly when volatility is expected to increase or decrease. This is also known as time decay. Theta quantifies how much value is lost on the option due to the passing of time.

It is typically negative for purchased calls and puts, and positive for sold calls and puts. Note that it is not advisable for inexperienced traders to trade near expiration, as it can be more complex than when there is more time to expiration. Rho —There are several other secondary Greeks that are not as widely used as those listed above.

Greeks

Rho is one such Greek. Note that the relationship between interest rates and option value is not significant. Strictly speaking, an increase in interest rates will increase the value of a call option and decrease the value of a put option. If rates were expected to change dramatically, some traders might incorporate Rho into their analysis. In practical terms, interest rates influence option prices very little. It can take a little time to learn how to interpret Greeks and to determine which ones you think may or may not be helpful.

Learning about Greeks, and how changes in market conditions can affect the price of your options, may help you become a better options trader. Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options.

Supporting documentation for any claims, if applicable, will be furnished upon request. Use this simple yet powerful technical indicator to unlock a wealth of information within your charts.

Get buy or sell signals. Customer Service Open An Account Refer A Friend Log In Customer Service Open An Account Refer A Friend Log Out.

Default text size A Larger text size A Largest text size A. Get to know the Greeks Use these tools to enhance your options trading proficiency. Trading Active Trader Pro Options. Greeks are mathematical calculations used to determine the effect of various factors on options.

Views and opinions expressed may not reflect those of Fidelity Investments. These comments should not be viewed as a recommendation for or against any particular security or trading strategy. Views and opinions are subject to change at any time based on market and other conditions. Fidelity Brokerage Services LLC, Member NYSE, SIPC, Salem Street, Smithfield, RI Please enter a valid e-mail address.

Important legal information about the e-mail you will be sending.

Stock Market Data - Dow Jones, Nasdaq, S&P - CNNMoney

By using this service, you agree to input your real e-mail address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an e-mail. All information you provide will be used by Fidelity solely for the purpose of sending the e-mail on your behalf. The subject line of the e-mail you send will be "Fidelity.

Your e-mail has been sent. Related Articles Chart tips If you like to use charts, consider the time frame, the type of chart, and a benchmark. Moving averages Use this simple yet powerful technical indicator to unlock a wealth of information within your charts.

Get buy or sell signals This indicator can generate buy and sell signals. Stay Connected Locate an Investor Center by ZIP Code. Please enter a valid ZIP code. Careers News Releases About Fidelity International. Copyright FMR LLC. Terms of Use Privacy Security Site Map Accessibility This is for persons in the U.