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Option Greeks in Plain English
Delta
How much the premium moves per 1-point index move. ATM options ≈ 0.5 delta; spreads net deltas down to defined risk.
Theta (time decay)
Premium lost per day. Buyers bleed theta (worst on expiry day); sellers collect it — which is why Iron Condors want range + time.
Vega (IV sensitivity)
Premium change per 1% IV move. Long straddles are long vega (want IV expansion); short premium structures are short vega.
Risk management
Defined-risk spreads cap loss at width minus premium; size positions so max loss ≤ 1–2% of capital; never hold short stock options into physical settlement without a plan.