How to Use Option Greeks in Trading Effectively

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How to Use Option Greeks in Trading Effectively

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Option Greeks are a set of powerful risk management tools that help traders understand how different factors affect the price of options. These mathematical values quantify the sensitivity of an option’s price (also known as the premium) to various elements call and put stock price movement, time decay, volatility, and interest i4Option . Understanding Greeks is critical for any options trader aiming to control risk and improve trade accuracy.

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