Start with each greek
Each greek has its own deep-dive guide with a plain-language ₹ example. Read them, then come back for how they interact.
Delta
Your directional exposure — how much you make or lose per ₹1 move in the underlying.
Gamma
The acceleration of your P&L — how quickly your directional exposure itself changes.
Theta
Time decay — what you pay (or earn) simply for holding the position another day.
Vega
Your volatility exposure — how much you make or lose when the market re-prices risk.
Rho
Interest-rate sensitivity — the quietest greek, and why it rarely drives a weekly trade.
The core trade-off: nothing is free
The single most important idea in options is that the greeks are linked. You cannot cherry-pick the good ones — taking a position that benefits from one greek almost always means paying for it through another.
Long options give you positive gamma (convex, movement-loving payoff) but negative theta (you bleed time value daily). Short options flip both: you earn theta but carry negative gamma. You can’t be long gamma and collect theta at the same time.
The long-vega positions that profit when volatility rises are usually the same ones paying theta. Sellers earn theta but are short vega — an IV spike hurts them even before the market moves.
As expiry nears, ATM gamma and theta both explode while vega fades. A calm short-premium book can turn dangerous on expiry day precisely because gamma is at its peak.
Buyers vs sellers — opposite signs on every axis
Every greek has a sign, and the option buyer and seller always sit on opposite sides of it. This table is the whole game on one screen:
| Greek | Option buyer (long) | Option seller (short) |
|---|---|---|
| Delta | Directional | Directional (opposite) |
| Gamma | + Convexity helps | − Convexity hurts |
| Theta | − Pays time decay | + Earns time decay |
| Vega | + Gains if IV rises | − Gains if IV falls |
| Rho | Small rate exposure | Small rate exposure |
The buyer rents movement and volatility and pays for it in time. The seller earns time and takes on the risk of movement and volatility. Every strategy is some blend of these two roles.
Position greeks: it’s the net that matters
A multi-leg strategy has a greek for every leg, but what you actually trade is the net — the sum across all legs. That single set of net greeks tells you what your position really is, regardless of how many options it contains.
Worked scenario — one position, all five at once
Imagine a short at-the-money NIFTY straddle a few days before expiry — you sold both the 24,000 call and put. Here is how every greek shows up simultaneously:
The trade earns theta every quiet day (good) but is short gamma and short vega (dangerous) — so it makes slow, steady money and can lose quickly on a gap or volatility spike. That single sentence is the combined effect of the greeks.
Watch the greeks move in real time
The Strategy Builder shows net and per-leg greeks for any position you build. Add legs and see Delta, Gamma, Theta, Vega and Rho update live.
Educational content only — not investment advice. All figures are illustrative and do not reflect live quotes. Options carry significant risk; consult a registered adviser before trading.