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Greeks
Second-Order Greeks Explained: Vanna, Charm, Vomma & More
If the first-order Greeks are speed, the second-order Greeks are acceleration. They’re where the real dealer-flow story lives — and they’re simpler than they sound.
NoVo Options Trading · 2026
The first-order Greeks — delta, gamma, theta, vega — measure an option’s sensitivity to price, time, and volatility. Second-order Greeks measure how those sensitivities themselves change. They’re where the dealer-flow story gets interesting.
The key second-order Greeks
Vanna — how delta changes with volatility. Charm — how delta changes with time (delta decay). Vomma — how vega changes with volatility (vol convexity). Veta — how vega changes with time. Each captures a way your first-order exposure drifts as conditions move.
Why they matter
Dealers hold enormous options books and must hedge all these exposures, not just delta. So when volatility or time moves, second-order Greeks force real hedging flows — buying and selling that pushes price with no news. Vanna flows and charm-driven pins are the two most visible on the tape, especially around OPEX and vol resets.
First-order Greeks tell you your exposure now; second-order Greeks tell you how it drifts — and drifting exposure is what forces dealers to trade, moving the tape.
What it means for a scalper
You don’t calculate these, but understanding them demystifies moves that look random — drift after a vol crush, pinning into the close. There are even third-order Greeks (color, speed, zomma) for the truly deep. For 0DTE specifically, see higher-order Greeks for 0DTE. NoVo trades the result — the dealer levels these flows build.
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.