Option Payoffs, Value and the Greeks
Understand intrinsic value, time value and the main option Greeks—delta, gamma, theta and vega—and how they help explain changing call and put prices before expiry.
Intrinsic and time value
Intrinsic value reflects where the underlying sits relative to strike. Time value reflects the remaining uncertainty and can decay as expiry approaches.
Delta and gamma
Delta approximates price sensitivity to the underlying; gamma describes how delta can change as the underlying moves.
Theta and vega
Theta describes time-decay sensitivity, while vega describes sensitivity to implied volatility. These are risk measures, not guaranteed predictions.
Frequently asked questions
What does the Option Payoffs, Value and the Greeks page cover?
It covers understand intrinsic value, time value and the main option Greeks—delta, gamma, theta and vega—and how they help explain changing call and put prices before expiry.
Does a documentation example guarantee a live market or fill?
No. Market availability, expiries, strikes, liquidity, fees and contract state can change. Check the live application and selected network before acting.
Are CallPut stock and ETF options ownership of the referenced security?
No. The documented stock and ETF options are synthetic onchain instruments and do not grant shares, fund units, dividends, voting rights or physical delivery.