Options Greeks
What is Speed and how does it quantify the third-order derivative of option price relative to underlying changes?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Speed is a third-order Greek measuring the rate of change of gamma relative to a change in the underlying stock price, describing how quickly gamma itself accelerates.
How it works
Speed is most significant for options very near the money with little time to expiration, where gamma is already elevated and can shift abruptly with further stock moves.
An example
A rapid stock move through an at-the-money strike can cause gamma to spike quickly, and speed quantifies the pace of that gamma acceleration for sophisticated hedging models.
Risk & limitations
Speed is a higher-order risk metric used mainly by institutional desks and market makers, with limited practical application for typical retail options trading decisions.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.