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The options chain offers two related but different multiples, each as an optional column: Leverage and Lambda (λ). Both are derived from the option’s model price — the theoretical Black-Scholes value Joyride computes from BlockScholes implied volatility — so neither depends on order-book depth. They answer different questions. Showing both under distinct names follows the convention used in retail warrant markets, where “gearing” and “effective gearing” are displayed side by side.

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Leverage

Leverage is how many dollars of notional exposure each dollar of premium controls:
A leverage of 50× means one dollar of premium controls fifty dollars of the underlying. This matches the leverage figure shown on other major options venues. Leverage is a cost ratio, not a margin requirement. Buying an option costs the full premium up front — there is no additional margin posted or borrowed against a long option. Because the denominator is the option’s model price, cheap deep out-of-the-money options show very large leverage. A high number means the option is cheap relative to spot — it does not describe how the option’s value will move.

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Lambda

Lambda — also called effective gearing — is a sensitivity measure: approximately how many percent the option’s model value moves for a 1% move in the underlying:
Lambda is Leverage scaled by the option’s delta. Deep in-the-money options (delta near 1) have λ close to their leverage; deep out-of-the-money options (delta near 0) have λ far below their leverage, because most of a small underlying move does not reach the option’s value. Near expiry, λ for far out-of-the-money strikes can grow very large while the probability of any payoff shrinks. A triple-digit λ is a signal that the option is a long shot, not a promise of amplified returns.

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Leverage vs. Lambda

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Inputs

The model price is a display-only theoretical value. It is not an executable quote and is not the mark used for margin or liquidation.

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Missing Values

Both columns render -- when any input is unavailable or stale — for example while price feeds warm up or if the pricing service is degraded. Joyride never substitutes a placeholder number for a value it cannot compute.

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Interpretation

Neither number is a promise of returns, and neither describes margin. For a bought option, loss is limited to the premium paid — nothing else is posted or at risk. Selling (writing) an option is different: you post margin, and your loss is not capped at the premium, so neither Leverage nor Lambda reflects a seller’s risk. Use Leverage to compare how much exposure your premium buys across strikes, and Lambda to compare how strongly each option’s value reacts to the underlying.