Authored by William HerrmannMany are probably more used to seeing words such as Vega, Rho, Theta, and Delta in the context of fraternities and sororities instead of being central in the pricing and trading of derivatives such as equity options.
For those that do not trade options, that is quite normal.
However, only a small subset of retail options traders understand the mathematics behind how options are valued, such as the “the Greeks”. This lack of fundamental knowledge about risk and return characteristics might start to explain the detrimental impact of option trading on investor performance.1
The Greeks, a Primer
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