Options Trading

Option Greeks Recap

Test your knowledge of option greeks and their effects. Select the best answer for each question.

AAPL is at $175. A $180 call has 0.40 delta. If AAPL rises to $176, approximately what happens?

Option loses $0.40 Option gains $0.40 Option value stays the same Option delta becomes 0.40

Which position has positive gamma exposure?

Short 1 TSLA call Short 100 shares of TSLA Long 1 TSLA put Short 1 TSLA put

META earnings are tomorrow. Which greek becomes more significant?

Delta Gamma Theta Vega

SPY at-the-money options have the highest _____ exposure.

Delta Gamma Theta Rho

You're short NVDA puts. Which greek exposure hurts you most in a crash?

Negative delta as price falls Negative gamma accelerating losses Positive theta decay Positive vega as volatility spikes

Which strategy has the highest negative theta (time decay)?

Long deep ITM call Short OTM put Long ATM straddle Long stock

AMD moves up $5. Which position gains the most delta?

Long 1 ATM call Long 1 deep ITM call Long 1 far OTM call Long 100 shares of AMD

You're delta-neutral but worried about volatility spikes. Best hedge?

Buy more stock Buy long-dated options Sell short-dated options No hedge needed if delta-neutral