Key Takeaway
Delta measures how much an option price changes per ₹1 stock move. Theta measures daily time decay. Vega measures sensitivity to volatility changes. Together, the Greeks define an option's risk profile.
Options Greeks Estimator
Estimate the change in option premium based on Greeks.
Market Changes
Estimated Premium Change
+₹10.50
Approximation based on Taylor Series expansion of Greeks.
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Frequently Asked Questions
What does Option Delta measure?
Delta measures how much the option's price will change for a ₹1 change in the underlying stock price. A 0.50 Delta call option will increase by ₹0.50 if the stock rises by ₹1.
What is Option Theta (Time Decay)?
Theta measures the rate at which an option's value declines as it approaches its expiration date. Options lose value every day, hurting option buyers but benefiting option sellers.
What is Implied Volatility (Vega)?
Vega measures an option's sensitivity to changes in the volatility of the underlying asset. When market panic sets in, IV rises, causing option premiums to spike even if the stock price hasn't moved.
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