Here's how traders can use delta and gamma for options trading

Option Greeks are basically about sensitivities. We are familiar with the Black and Scholes formula to calculate the value of the option. But then a trader is more worried about sensitivities. These Option Greeks measure how the option value is vulnerable to changes in various variables like the market price, interest rates, volatility, time to expiry etc. Two very important and closely related Greeks are Delta and Gamma. Let us look at them in greater detail.

Understanding Option Delta
 

Option delta measures the sensitivity of the price of an option (intrinsic value) to the changes in the market price of