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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-76 value Joyride computes from the mark implied volatility. 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. 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 is a sensitivity measure: approximately how much 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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Interpretation

Neither number is a promise of returns, and neither describes margin. For a bought (long) 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.