Ultimate Options – Greeks

True or False: An option theta of -0.10 suggests that an option will lose -0.10 of value for 1-day of decay. However, the theta value may change especially as the expiration date approaches.

An option delta of 0.20 suggests what about the probability of that option being in-the-money at expiration?

Going into an earnings announcement and following the report what tends to happen with vega?

Which of the following option greeks is typically most difficult to predict?

How does a risk graph shown before expiration differ from one that shows at expiration?

With an option delta of 0.40, and a gamma of 0.05, how much would a 1.50 call be worth after the stock moves UP by 2.00 per share?

With an option delta of -0.40, and a gamma of 0.10, how much would a 2.00 put be worth after the stock moves DOWN by 2.00 per share?

With an option delta of -0.20, a theta of -0.05, and a vega of 0.05 how much would a 3.30 put be worth with a 1-day decay, 1% increase in volatility and 1.00 per share move DOWN in the stock?

If we sell an OTM credit spread for cash flow, can the theta (time decay) ever begin to hurt us?