@SunnyBhoy, where abouts are you in Oz? You do need to know how the greeks work to understand how options work. Every option reacts differently in different situations. Firstly, delta is easiest. It's the rate of change in the options when the underlying moves $1. So delta of 1 means a 1-on-1 move. Delta of .20 means 20 cents per $1. Gamma is how de delta of the option changes per $1 move in underlying. So, the delta of an option changes when the underlying moves... it doesn't stay the same. This means, when you thing you're fully hedged... you're not, because the hedge ratio changes. Especially important when shorting options... you'll be short gamma. Vega is important because the value of an option can change even when there's no movement. Or, you might gain with the movement with a certain delta positions... but you might lose that gain because the implied volatility (IV) changes and therefore you can lose on your vega position. Long option is long vega.... short is short vega. And then there's Theta... which is the amount the option changes over 24 hrs. These are the most important greeks... And they will all change when the underlying moves... but also over time... and also when the implied volatility changes... So you must understand that options are way more dynamic than stocks. Stocks go up or down... options, that's a different world mate....