OptionGreeks 2024.12.23

OptionGreeks serves as an educational resource designed to enhance user understanding of option pricing and the complexities of options trading. As derivative instruments, options derive their value from underlying financial assets, which can include various securities such as individual stocks, bonds, commodities, and indices. This application places a primary focus on European options, which can only be exercised at expiration, encompassing both Calls and Puts from the perspectives of buyers (long) and sellers (short).

The Strategies tab offers a comprehensive examination of different option strategies through the combination of multiple options alongside the underlying assets. Users can analyze the payoff profiles, pricing, and the Greeks associated with these strategies, facilitating a deeper comprehension of risk and reward scenarios.

In the Options tab, users can derive theoretical prices for specific options by manipulating relevant parameters through an intuitive slider system. Key factors include the spot price of the underlying asset, strike price, risk-free interest rate (discount rate), implied volatility, yield of the underlying asset, and days to maturity (expiry). Additionally, the application calculates various Greek values—delta, gamma, theta, rho, vega, and epsilon—displaying them visually in charts that correspond to user-selected parameters.

The Calculator tab provides a more traditional approach for calculating option pricing. Users can input exact amounts instead of adjusting sliders, ensuring precision in their calculations. This feature also includes a dynamic graphical representation that updates as parameters are adjusted, enhancing the user's interactive experience.