Options Crash Course: The Greeks - July 2, 2021 - Speed in Options Explained

published 3 weeks ago by tastytrade, Inc.

In the final episode of the Greeks Crash Course, we take a look at Speed. As a third-derivative of the Black-Scholes Model, Speed measures how Gamma changes with changes to the stock price. With Delta measuring our directional bias and Gamma measuring the risk of that bias, Speed shows us yet another layer of directional risk that our portfolios might be exposed to.

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