Best Practices - April 10, 2018 - The Greeks & Implied Volatility




The tastytrade network show

Summary: High IV markets provide option sellers: * Increased premium * Higher probability of success In today's segment, Tom and Tony dig deeper to see what the Greeks tell us. The 4 main [greeks](https://www.tastytrade.com/tt/learn/an-intro-to-the-greeks) that they look at include: * [Delta](https://www.tastytrade.com/tt/learn/delta)- Directional risk * [Gamma](https://www.tastytrade.com/tt/learn/gamma) - Speed of delta change * [Theta](https://www.tastytrade.com/tt/learn/theta) - Rate of premium decay * [Vega](https://www.tastytrade.com/tt/learn/vega) - Volatility risk Through an in-depth series of visualizations, they concluded that in [High IV](https://www.tastytrade.com/tt/learn/measuring-implied-volatility) markets, the Greeks demonstrate a higher potential decay, as well as less volatile risk exposure, for short option positions.