Of course it does.
For example, if I’m of the opinion that a particular stock’s volatility is quite high compared to its historical volatility, then I’d like to short the volatility with an expectation that volatility will revert to mean. As you may know, the volatility is measured by an option greek called the Vega. So your trade would be something like this…
Stock : Infosys
Average Vega - 30%
Current Vega - 45%
Trade- Short Volatility
Action - Short ATM Call option
Expected decline in Vega - 15%
As you know when the vega declines, the option prices also declines. When option price declines, the short option turns profitable.
So as you can see, the entire trade is based on your perception of Vega.
Please note this is just a random illustration to give you a sense of how to use the greeks.
could u suggest any link or any books on how to understand greeks in detail…thanku
@Karan - Try Sheldon Natenberg’s book on options.