What are option Greeks? (Delta, Theta, IV)
The Greeks measure how an option's price reacts to moves, time and volatility. A quick intro to Delta, Theta and IV, and where to see them.
The Greeks are numbers that describe how an option's price will move. You don't need heavy maths — just what each one tells you. On Nifty Paper Trade, turn on Greeks in the option chain to see them per strike.
The main ones
- Delta — how much the option price moves per 1-point move in the underlying. ATM ≈ 0.5; higher delta = behaves more like the underlying.
- Theta — time decay: how much value the option loses each day, all else equal. Rises sharply near expiry.
- IV (implied volatility) — the market's expected volatility. Higher IV = pricier options. Spikes before events, drops after.
For the full treatment, read option greeks explained and implied volatility (IV).
Why they matter
Greeks explain why an option gained or lost even when you were right on direction — usually theta (time) or IV (a volatility drop). Watching them while paper trading builds real intuition.
FAQ
What is theta / time decay?
The value an option loses each day simply because expiry is closer. It accelerates in the final days.
What does high IV mean?
The market expects big moves, so options are expensive. After the event, IV often falls and options cheapen ("IV crush").
Where do I see the Greeks here?
Toggle Greeks in the option chain to show IV, Delta and Theta per strike.