: an informal form of a name. â Diminutives can be a shortened form of a name (such as âJenâ for âJenniferâ and âDickâ for âRichardâ) or a name with a diminutive suffix added to it (such as âBobbyâ for âBobâ).
The sensitivity of an option's market value relative to a change in the time to expiration. Theta is a measure of time decay and tends to grow larger as an option approaches expiration.
Investopedia explains Gamma. Mathematically, gamma is the first derivative of delta and is used when one is trying to gauge the price of an option relative to how much it is in or out of the money. When the option being measured is deeply in or out of the money, gamma is small.When the option is near the money, gamma is large.he gamma of an option is greatest when an option is near the money (strike price close to market price of underlying asset) and near zero when an option is deep out of the money.