BROWSE

Omega

What is 'Omega'

In finance, omega represents the percentage change in an option's value with respect to the percentage change in the underlying price. Omega (Ω) measures the leverage of an options position.

Explaining 'Omega'

For example, if Ford Motor Co (F) shares increase 7% in a given period and a Ford call option increases 3% in that same period, the omega of the call option is 3 ÷ 7, or 0.43. This would imply that for every 1% Ford stock moves, the call option will move 0.43%.

Options Greeks

Omega is one of the Greeks, a set of metrics that give a sense of an options contract's risk and reward with respect to different variables. While there are many Greeks, omega is one of a limited number of first-order Greeks, meaning that it relates directly to the value of an options contract, rather than to another Greek. The most common first-order Greeks are:

Relationship to Delta

The equation for omega can also be expressed:


Further Reading


Workshop on the essentiality of and recommended dietary intakes for omega-6 and omega-3 fatty acids
www.tandfonline.com [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …

Relationships among the academic business disciplines: a multi-method citation analysisRelationships among the academic business disciplines: a multi-method citation analysis
www.sciencedirect.com [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …

Big data, computational science, economics, finance, marketing, management, and psychology: connectionsBig data, computational science, economics, finance, marketing, management, and psychology: connections
www.mdpi.com [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …

Stochastic dominance and omega ratio: Measures to examine market efficiency, arbitrage opportunity, and anomalyStochastic dominance and omega ratio: Measures to examine market efficiency, arbitrage opportunity, and anomaly
www.mdpi.com [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …

Crypto-assets portfolio optimization under the omega measureCrypto-assets portfolio optimization under the omega measure
www.tandfonline.com [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …

Omega-6/omega-3 essential fatty acid ratio and chronic diseasesOmega-6/omega-3 essential fatty acid ratio and chronic diseases
www.tandfonline.com [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …

Omega-3 fatty acids in inflammation and autoimmune diseasesOmega-3 fatty acids in inflammation and autoimmune diseases
www.tandfonline.com [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …

Ratio of omega‐6 to omega‐3 fatty acids and childhood asthmaRatio of omega‐6 to omega‐3 fatty acids and childhood asthma
www.tandfonline.com [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …

Open trial of supplements of omega 3 and 6 fatty acids, vitamins and minerals in atopic dermatitisOpen trial of supplements of omega 3 and 6 fatty acids, vitamins and minerals in atopic dermatitis
www.tandfonline.com [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …

Omega portfolio construction with Johnson distributionsOmega portfolio construction with Johnson distributions
ideas.repec.org [PDF]
… Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids … Conference Report. Workshop on the Essentiality of and Recommended Dietary Intakes for Omega-6 and Omega-3 Fatty Acids …



Q&A About Omega


What is the definition of Omega?

The percentage change in an option's value with respect to the percentage change in the underlying price.

How do you calculate omega?

You can use this equation to calculate omega.

What does omega measure?

Omega measures leverage of an options position.

What are some other first order Greeks?

Delta, Vega and Rho.

Leave a Reply

Your email address will not be published. Required fields are marked *