June 2, 2026

The ‘Mathless’ Greeks – Learning

the Option Greeks Using Metaphor

Mat Cashman
Principal / Investor Education / OCC
Instructor / The Options Industry Council (OIC)

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The ‘Mathless’ Greeks – Learning the
Option Greeks Using Metaphor
Mat Cashman
Principal / Investor Education / OCC
Instructor / The Options Industry Council (OIC)

[Link]
Disclaimer
Options involve risks and are not suitable for everyone. Individuals should not enter into options transactions until they have read
and understood the options disclosure document, Characteristics and Risks of Standardized Options, available by visiting
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 Annual Options Volume 2000-2025
OCC Annual Contract Volume by Contract Type
16.0

14.0
Cleared Contracts (Billions)

12.0

10.0

8.0

6.0

4.0

2.0

0.0
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Equity Non-Equity
© 2026 The Options Clearing Corporation. All Rights Reserved.
Presentation Outline
• The Full Greeks Dashboard
• Definition of Delta
• Delta through Metaphor
• Definition of Gamma
• Gamma through Metaphor
• Definition of Theta
• Theta through Metaphor
•Q&A
© 2026 The Options Clearing Corporation. All Rights Reserved. 6
Option Greeks as a Dashboard
The Option Greeks as a Dashboard
Hear: Think:
Delta Speed
Gamma Acceleration
Theta Decay

Consider option Greeks to be like the dashboard of a car. They can help
you to monitor risk holistically. You don’t need to open the hood of your
car to see if it is running. Option Greeks give you that same ability with
your option positions.
© 2026 The Options Clearing Corporation. All Rights Reserved. 8
The Definition of Delta
Option Delta – A Technical Definition
Delta: An Option's value sensitivity to stock price
The expected change in an option’s price (up or down) for each $1.00 move in
underlying security price

Deep in-the-money options

• High Delta approaching 100% (or 1.00)
At-the-money options
• Deltas around 50% (or .50)
Far out-of-the-money options
• Low Delta approaching 0% (or 0)

© 2026 The Options Clearing Corporation. All Rights Reserved. 10

Delta Through Metaphor
Delta Explained Through Metaphor
Imagine Delta like a
speedometer for an options
portfolio.

Just like a car's speedometer tells

you how fast you're going, Delta
can tell you how much an
option's price should
theoretically change for every
one-point move in the
underlying.

© 2026 The Options Clearing Corporation. All Rights Reserved. 12

Delta Explained Through Metaphor
Just like speed in a car can change,
an option’s Delta can change as
well.
The faster you go (the higher an
option’s Delta) the more sensitive to
changes in the underlying that option’s
price will be. 6 delta = 60 cents

Just like movement in a car going 100

Mph reacts much differently
to movement than a car going 10 Mph
- so too does the movement in an
option price with 100 Delta versus an
option with a 10 Delta.

© 2026 The Options Clearing Corporation. All Rights Reserved. 13

The Option Greeks as a Dashboard
Hear: Think:
Delta Speed
Gamma Acceleration

Consider option Greeks to be like the dashboard of a car. They can help
you to monitor risk holistically. You don’t need to open the hood of your
car to see if it is running. Option Greeks give you that same ability with
your option positions.
© 2026 The Options Clearing Corporation. All Rights Reserved. 14
The Definition of Gamma
Option Gamma – A Definition
Gamma: Delta’s sensitivity to stock price
The anticipated change in the Delta value for a $1.00
move in the underlying security
• All other pricing factors constant
• In decimal form (e.g., .002)
• Adjustment to Delta

Only options have Gamma

© 2026 The Options Clearing Corporation. All Rights Reserved. 16

Gamma through Metaphor
Gamma Explained Through Metaphor
Think of Gamma as the
potential change in an option’s
Delta.
Gamma measures how quickly the
Delta of an option can change.
When Gamma is high, an option’s
Delta can accelerate or decelerate
quickly in response to changes in
the stock price.

© 2026 The Options Clearing Corporation. All Rights Reserved. 18

Gamma Explained Through Metaphor
High Gamma options have
high potential to change
quickly.

You can think of different Gamma

profiles of options like different
types of cars.

Sports cars have the potential to

change direction quickly, or
accelerate or decelerate rapidly.
This is similar to how options with
high Gamma profiles can react to
movement in the underlying.
© 2026 The Options Clearing Corporation. All Rights Reserved. 19
Gamma Explained Through Metaphor
Low Gamma options have
low potential to change
quickly.

You can think of different Gamma

profiles of options like different
types of cars, or trucks.

Large trucks require significant

force to accelerate or decelerate.
This is similar to how options with
low Gamma profiles generally react
to movement in the underlying.

© 2026 The Options Clearing Corporation. All Rights Reserved. 20

The Option Greeks as a Dashboard
Hear: Think:
Delta Speed
Gamma Acceleration
Theta Decay

Consider option Greeks to be like the dashboard of a car. They can help
you to monitor risk holistically. You don’t need to open the hood of your
car to see if it is running. Option Greeks give you that same ability with
your option positions.
© 2026 The Options Clearing Corporation. All Rights Reserved. 21
The Definition of Theta
Option Theta (Time Decay) – A Definition
Theta: An option's value sensitivity to time

Expected time decay in option value

• With the passage of 1 day
• Expressed in decimal form (-.080)
• Decay is per calendar day, not per trading day
• Represents cash amount per option
• All other pricing factors constant
Calls and puts both have negative
theta amounts

© 2026 The Options Clearing Corporation. All Rights Reserved. 23

Theta Through Metaphor
Theta Explained Through Metaphor
Theta is the theoretical decay of
an option’s value over the
course of one day.
Consider theta like the sand in an hourglass,
constantly moving from one side of the
hourglass to the other.

As time passes, and at any given moment,

there is less sand in the upper part of the
hourglass, and more sand in the bottom part
of the hourglass. You can think of this like
options decay.

© 2026 The Options Clearing Corporation. All Rights Reserved. 25

Theta Explained Through Metaphor
Unlike the hourglass, however,
Theta is not a pure linear decay
function.

As time passes and option expiration

approaches, the Theta of options
accelerates.

In this way, you can think of Theta like a

race where a runner speeds up as they
get closer to the finish line.

© 2026 The Options Clearing Corporation. All Rights Reserved. 26

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