Do we really need Greeks to Trade Options? Consider this. You are driving a car down a road. You really don't need to refer to any instruments while doing so. You have a fairly good idea of speed, direction and acceleration without needing anything else.
What if you are piloting a plane? Now you have other variables to contend with. Altitude, head or tailwind, drag, etc etc. Under adverse conditions or in cloudy ones, you dont even have access to visual clues or sense of direction or altitude.
Options have at least 3 dimensions all of which interact differently with each other under different conditions. There is direction and acceleration of course but added to this is time and Volitility. Greeks let you know how Option Prices will change as these factors change
Coming back to the question of whether you need Greeks to Trade Options. If you are Trading simple Strategies such as Strangles and Straddles in single underlying or if your Trades are for a smaller time frame such as Expiry Trades- you probably don't.
However, if you have a complex Position or if your Time Frame is longer or if you have multiple Positions, you definitely need them. Besides letting you know exactly how each variable will effect your Position, Greeks will also help you decide how to adjust.
Adjustment can be to reduce losses or maximize gains as the Markets change. With experience, you have a fairly good idea of what needs to be done, but understanding Greeks will help fine tune adjustments and the small increase in Profits that this will make will add up quickly
There is an impression that Greeks are a complex subject and very difficult to learn. Nothing could be further from the truth. You dont need to understand the Math behind the Greeks any more than you need to understand the working of an Internal Combustion Engine to drive a car
It takes hardly a day on YouTube to understand enough of the Greeks to manage your Positions and I can guarantee that once you invest that time and effort, your Trading will move to another level. Combine this with the use of Payoff Charts and it can be revolutionary
