How Option Greeks affect the option premiums?
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Option Greeks are nothing but the set of parameters or calculations that affect the price of an option.
There are 5 types of Option Greeks Delta, Gamma, Vega, Theta, Rho.
Delta and Gamma are used for calculating the value of the underlying assets. Whereas Vega is used for Volatility.
Theta is for Time and Rho is for Interest rate.
The most important factors are Delta, Vega, and Theta.
Most of the option traders keep an eye on these factors to enter or to exit the position.