# Calculating Greeks in Covered Calls?

Just want to confirm whether Delta, Gamma, Theta, Vega will be calculated in the following way? Since we own 100 shares of stock while selling a call we need to subtract greek value from one? right?

Covered Call Delta = 1 - "Long Call delta"

Covered Call Gamma = 1 - "Long Call gamma"

Covered Call Theta = 1 - "Long Call theta"

Covered Call Vega = 1 - "Long Call vega"

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You are right for delta but wrong for other greeks.

Delta of stock is 1 so Covered call Delta = 1 - "long call delta" is correct

However a stock doesn't have gamma , theta or vega. So these greeks of your covered call positions will be just that of short call. i.e

Covered Call Gamma =  - "Long Call gamma"

Covered Call Theta =  - "Long Call theta"

Covered Call Vega =  - "Long Call vega"

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Correct. An alternative way is to remember that a covered call is actually a synthetic short put at the same strike as the call. So the Greeks will be that of a short put. – Victor123 May 29 '15 at 20:24

Check out this post: http://www.macroption.com/option-greeks-excel/

Let me know if it answers your query.

The Excel equations used to calculate Delta, Gamma, Theta and Vega are shown in the above link.

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Hi Chris Andy, welcome to Quant.SE! Could you please edit your answer so it stands on its own? These links on their own, while useful, do not make a good answer. – Bob Jansen Apr 16 at 8:44