Option Greeks

Option Greeks

Option Greeks are an essential part of options analysis. Many traders make trades based on Greeks analysis. These are financial metrics that traders use to measure the factors that affect the price of an options contract. Greeks are utilized in the sensitivity analysis of the derivatives portfolio, option portfolio to be specific. 

There are multiple greek parameters available for analysis. However there are 5 Greeks which are widely used throughout the industry which are : 
  1. Delta- Measure of the sensitivity of the option’s price with respect to the movement in the underlying asset’s price.  
  2. Vega- Measure of the sensitivity of the option’s price with respect to the volatility of the underlying asset. 
  3. Gamma- Measure of rate of  change of Delta with respect to the movement in the underlying asset’s price. 
  4. Theta- Measure of change in price with respect to time to maturity/expiry
  5. Rho- Measure of the price sensitivity of the option with respect to the interest rates.
Using these 5 base Greeks, the user can derive more greeks and analyze them to create their own trading strategy. 

We at 5 paisa have provided 16 different greeks to the users which can be analyzed. 

How to access?

Users can access the Greeks data by navigating to the option chain on the FnO360 platform and the mobile app. 5paisa provides greeks to the users so that their analysis can be in real-time and similar to the option chain. The greeks also have  a lightning fast refresh rate so that as and when the price fluctuates, the greeks value also gets updated. 

On the FnO360 platform, there are 2 ways user can access the option chain to view greeks. These are-
  1. Mini Option chain - Users can view 5 different greeks from the mini option chain. Delta, Theta, Vega, Gamma, IV. If the users want to view some other greeks, user have the option to change those in the settings tab which can be accessed next to the Option chain mode dropdown. 

  2. Expanded option chain -  Users have the option to choose 16 greeks to view at the same time. Greeks available to the users are Delta, Vega, Gamma, Theta, IV, Volga, Color, Zomma, Speed,  Charm, Vanna, IV_Vwap, Veta, TGR, TV, DTR.

Users can also have the facility to rearrange the positioning of different parameters and the same will be remembered by the system upon login until the device's local storage is cleared. Users can also view the option greeks when multiple option chains are toggled. 

Visit FnO360 to get the best Greeks and derivatives experience.