Options cheatsheet

Options Greeks Cheat Sheet 
 Implied Volatility (IV) 
 What it is: The market's expectation of how much the stock price will move over the next year, expressed as a percentage. 
 
 
 
 Value 
 What it means 
 
 
 
 
 0–20% 
 Low volatility — stock expected to be calm 
 
 
 20–50% 
 Normal range for most stocks 
 
 
 50–80% 
 High volatility — big moves expected 
 
 
 80%+ 
 Extreme volatility — options are expensive 
 
 
 
 
 Your WD put: IV = 93% → Market expects massive swings. Options are pricey. 
 
 
 Delta (Δ) 
 What it is: How much the option's price moves when the stock moves $1 . 
 
 
 
 Value 
 What it means 
 
 
 
 
 0.00 to +1.00 
 Calls — rises when stock rises 
 
 
 0.00 to −1.00 
 Puts — falls when stock rises 
 
 
 ±0.50 
 Roughly 50/50 chance of expiring in the money 
 
 
 ±0.80–1.00 
 Deep in the money — moves almost like the stock 
 
 
 ±0.01–0.10 
 Far out of the money — very unlikely to profit 
 
 
 
 
 Your WD put: Delta = −0.0805 → For every $1 WD rises, your put loses ~$0.08. For every $1 WD falls, your put gains ~$0.08. 
 
 
 Gamma (Γ) 
 What it is: How much delta itself changes when the stock moves $1. Think of it as delta's sensitivity. 
 
 
 
 Value 
 What it means 
 
 
 
 
 High (0.05+) 
 Delta changes rapidly — option is very sensitive to price moves 
 
 
 Low (0.001–0.005) 
 Delta barely changes with price moves 
 
 
 Near expiration 
 Gamma spikes dramatically 
 
 
 
 
 Your WD put: Gamma = 0.0002 → If WD drops $1, delta moves from −0.0805 to about −0.0807. Very small — you're far out of the money. 
 
 
 Theta (Θ) 
 What it is: How much value the option loses each day just from time passing, assuming the stock price stays flat. Always negative for buyers. 
 
 
 
 Value 
 What it means 
 
 
 
 
 −0.01 to −0.05 
 Slow decay — often far from expiration 
 
 
 −0.05 to −0.20 
 Moderate decay 
 
 
 −0.20+ 
 Fast decay — usually near expiration or high IV 
 
 
 
 
 Your WD put: Theta = −0.1049 → You lose ~$10.49 per day (×100 shares per contract) just from time passing. Over 30 days = ~$314 lost to time decay alone. 
 
 
 Vega (ν) 
 What it is: How much the option's price changes when IV moves 1% . 
 
 
 
 Value 
 What it means 
 
 
 
 
 High (0.50+) 
 Very sensitive to volatility changes 
 
 
 Low (0.01–0.10) 
 Less affected by volatility shifts 
 
 
 Long options 
 You benefit when IV rises 
 
 
 Short options 
 You benefit when IV falls 
 
 
 
 
 Example: If your option has a Vega of 0.30 and IV jumps from 93% to 94%, the option gains $0.30 in value (×100 = $30 per contract). 
 
 
 Rho (ρ) 
 What it is: How much the option's price changes when interest rates move 1% . Usually the least important Greek for short-term traders. 
 
 
 
 Value 
 What it means 
 
 
 
 
 Positive (calls) 
 Rising rates slightly increase call value 
 
 
 Negative (puts) 
 Rising rates slightly decrease put value 
 
 
 Near zero 
 Short-dated options barely affected 
 
 
 
 
 Quick Reference: Your WD Put ($300 Strike, Jan 2028) 
 
 
 
 Greek 
 Your Value 
 Plain English 
 
 
 
 
 IV 
 93% 
 Market expects huge moves — option is expensive 
 
 
 Delta 
 −0.0805 
 Gains ~$8 per contract for every $1 WD falls 
 
 
 Gamma 
 0.0002 
 Delta barely changes — you're far out of the money 
 
 
 Theta 
 −0.1049 
 Loses ~$10.49/day per contract from time alone 
 
 
 Contract cost 
 $6,200 
 $62 quote × 100 shares 
 
 
 
 
 Key Concepts to Remember 
 
 One contract = 100 shares. Always multiply the quoted price by 100 to get your actual cost. 
 Out of the money (OTM): The stock price hasn't reached your strike yet. For puts, this means the stock is above your strike price. 
 In the money (ITM): Your option has intrinsic value. For puts, this means the stock is below your strike. 
 Time decay accelerates as expiration approaches — the last 30 days are the fastest decay period. 
 IV crush: After major news events (earnings, etc.), IV often drops sharply, taking option prices with it even if the stock moves in your favour.