Greeks for income strategies
Learn what actually matters for option sellers. This helps you choose strikes, manage risk, and avoid high premium traps.
Delta is your directional exposure
Delta tells you how much an option's price moves when the stock moves. For income strategies, it is how you measure assignment risk and how aggressive your strike choice is.
Theta is the edge for sellers
Theta is time decay. All else equal, options lose value every day as expiration approaches. When you sell options, that decay works in your favor.
Vega is the premium trap
Vega measures how sensitive an option is to changes in implied volatility. High premium often comes from high volatility, which sounds good until you realize the market is pricing in a big move.
Gamma is the risk near expiration
Gamma measures how quickly delta changes. It gets larger as expiration approaches, especially near the strike. That is why short dated options can go from fine to problematic fast.
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