Part 3/7:
Gamma: Gamma measures the rate of change in Delta for every $1 movement in an underlying asset’s price. It helps traders understand how Delta is likely to change as the stock price fluctuates.
Theta: This tells traders how much an option's price will drop as one day passes, assuming all other factors remain unchanged. For example, if you held an option, its value might decrease by around $452 in one day purely due to the passage of time.
Vega: Vega indicates how much an option's price will increase or decrease when the implied volatility rises or falls by 1%. Higher implied volatility typically leads to higher options premiums, making Vega particularly relevant when searching for options to sell.