A dividend-paying stock in your portfolio performs as a two-dimensional function of the price and time. With options on stocks, there are four dimensions acting on the option -price, time, volatility, and interest rate. The quantitative metrics to measure the impact of each of these dimensions are referred to as “the greeks.” Sensitivity to price movements Delta measures the sensitivity of the option’s price to the change in the underlying stock price. Delta is one of the most commonly used Greeks. Delta is a percentage measure of the movement of the underlying. Assume, a trader bought a Call option priced at $1.00 and it has a .30 delta when the underlying stock is priced at $100. This means that the Call will move by 30% due to the move of the underlying. For example, if the underlying stock moved up from $100 to $110 the option’s price will now change by 30% of $10 or $3 making the option’s new price $4. No wonder buying Calls is so popular in times when the market experiences a