Questionnaire 3 of 10 · 10 questions
Understanding the Greeks
Delta, theta and vega—and why their effects interact.
Choose one answer per question. Explanations appear as you answer; your score appears after all ten.
- 01
You are short one put with delta −0.25. The stock falls $2. Roughly what happens?
- 02
You hold 100 shares and are short two 0.20-delta puts. Total share-equivalent exposure?
- 03
Delta reads 0.30. How should you treat that as a probability of assignment?
- 04
You are short a contract with theta of $6/day. It is Friday afternoon. Decay by Monday's open?
- 05
An option has 60 days left. Roughly how much time value remains at 30 days?
- 06
Which short option collects the most theta per day, all else equal?
- 07
What is theta on a deep in-the-money short put a week from expiry?
- 08
Raising implied volatility does what to the delta curve across strikes?
- 09
A long option has vega 0.12 per share per volatility point. IV rises from 25% to 27%. Approximate change for a standard 100-share contract?
- 10
Why can a short option lose money on a day when time decay helps it?