The Greeks Explained: Delta, Gamma, Vanna, and Charm
The "Greeks" are measurements that describe how an option's price changes in response to different market forces. On ChartGEX, you don't need to calculate them yourself — but understanding what they measure helps you read the dashboard like a professional.
Think of the Greeks as the physics behind dealer hedging. Each one describes a different force that pushes dealers to buy or sell.
Delta (Δ): The Direction Gauge
Delta measures how much an option's price moves for every $1 change in the stock.
- A call with delta 0.50 gains $0.50 when the stock rises $1
- A put with delta -0.30 gains $0.30 when the stock falls $1
For dealers, delta is the number they're constantly trying to zero out. When they sell you a call with 0.50 delta, they immediately buy 50 shares to cancel that exposure. That stock purchase is delta hedging in action.
Where you see it on ChartGEX: The Net Delta reading shows the aggregate directional tilt of all dealer positions.
- Positive net delta → dealers are net long shares
- Negative net delta → dealers are net short shares
Gamma (Γ): The Acceleration
Gamma measures how fast delta changes. It's the "second derivative" — the rate of change of the rate of change.