Risk Management & The Greeks

Delta gets called speed, odds, and exposure all at once. Here's what it actually measures, and how the three readings fit together.

Theta is the daily rent every option pays just for existing — and that rent isn't flat. Here's how it speeds up as expiration nears.

Delta tells you your current exposure. Gamma tells you how fast that exposure is about to shift — especially near the money and near expiration.

A stock that doesn't move can still swing your option's price — that's vega. Here's what it measures, and why it matters most around big events.

Which strike to sell is one decision. How much to sell is another. Here's how options sellers size a position, with a worked example.

Every options position has a calculable worst case. Here's how to work out max loss before you place the trade, for a cash-secured put and a covered call.

A fully deployed account has no room to react. Here's why options sellers hold cash back, and what a thin reserve actually costs in a pinch.

Ten different tickers isn't automatically diversified if they all move together. Here's what diversification really means for an options seller.

Concentration risk rarely arrives as one big decision — it builds trade by trade. Here's how, worked out over four months of an account.

There's no single right percentage — but there is a deliberate way to arrive at one. Here's the framework, tying together everything else in this course.