Blog

Gamma measures how much an option’s delta changes with a $1 move in the underlying. Long gamma positions, such as long calls and debit spreads, benefit from big moves but lose value to time decay. Short gamma positions, such as short options and credit spreads, profit when prices stay steady but take losses quickly if the market moves.

IV Percentile shows how often implied volatility (IV) has been lower than today’s level over the past year, giving you a sense of frequency. IV Rank shows where today’s IV falls between the highest and lowest levels in the past year, indicating its placement.

Learn how the differences between SPX and SPY options can shape your 0DTE trading approach.

Rho is the options Greek that measures how much an option’s theoretical value changes with a 1% increase or decrease in the risk-free interest rate.

Vega is the option Greek that measures the expected change in an option's price for a 1% increase or decrease in implied volatility.

In options trading, time decay refers to the erosion of an option's value as its expiration date approaches. The option Greek theta quantifies this decay, showing how much value an option loses daily, assuming other factors (like implied volatility and the underlying price) remain constant.