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Minor Greeks

While most options traders are familiar with the Major Greeks — like Delta, Gamma, Theta, Vega, and Rho — there’s a second tier of risk measures known as the Minor Greeks. These refine your understanding of how options behave under complex or changing conditions. They’re especially useful for advanced options strategies, long-dated contracts, or volatile markets where precision matters.
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Think of the Minor Greeks as “fine-tuning controls” on a machine that most people drive with the big levers. You might not need them for every trade, but when you do, they help you stay one step ahead.

Charm measures how an option's delta changes over time, even if the underlying price stays the same. Since delta doesn’t just change with price (gamma) but also with time, charm helps estimate how your hedge might drift as expiration approaches.

📌 Most noticeable in near-the-money options as they approach expiration. Traders managing delta-neutral positions use charm to adjust hedges preemptively.

Vomma shows how an option’s vega changes when implied volatility changes. It’s the second derivative of the option price with respect to volatility.

📌 Important for traders with large volatility exposure. Vomma explains how sensitive your vega is — especially in high-volatility environments or during earnings season.

Veta measures the change in vega over time — similar to theta but applied to volatility sensitivity.

📌 Useful in strategies that rely on volatility decay over time, like long straddles or strangles. It tells you how your exposure to volatility will shift as expiration nears.

Zomma represents the rate at which gamma changes when volatility changes. It's a third-order Greek — yes, we’re getting deep now!

📌 This matters in highly leveraged or high-gamma trades, especially when volatility is moving fast. It shows how your sensitivity to price movement changes as the market gets more volatile.

Color measures how gamma changes over time. Since gamma increases as options near expiration (especially at-the-money ones), color helps forecast how that increase will unfold.

📌 Advanced hedgers and market makers track color to understand how much gamma exposure might ramp up (or decline) as time passes.

Speed is the rate of change of gamma relative to the underlying price — in other words, how fast gamma itself changes.

📌 Speed gives insight into the acceleration of delta. It’s rarely used directly, but it's crucial in modeling highly dynamic or fast-moving markets.

The Minor Greeks give options traders a deeper understanding of how sensitivities evolve over time or under shifting conditions — like changing volatility or approaching expiration. They’re most useful for:

  • Complex strategies (like spreads, butterflies, or iron condors)
  • Long-dated or large positions
  • Professional or institutional traders managing large books

While most retail traders won’t use these daily, learning them can sharpen your edge — and prepare you for more advanced options strategies.