Methodology
Exactly how our numbers, curves and examples are produced — and their limitations.
The pricing model
All option prices and Greeks across the network use the Black-Scholes-Merton model for European options, the standard framework for index options such as Nifty and Bank Nifty. The standard-normal CDF is approximated with the Abramowitz & Stegun 7.1.26 formula, accurate to within about 7.5×10⁻⁸.
The base scenario
Unless a page states otherwise, worked examples use a Nifty spot of 24500, a lot size of 65, a risk-free rate around 6.5% and an implied volatility in the low-to-mid teens, reflecting typical Nifty conditions. These are illustrative round numbers chosen for clarity, not live quotes.
The diagrams
Greek curves, payoff diagrams and indicator plots are generated from a numeric engine at build time and rendered as inline SVG. Shapes are quantitatively accurate; y-axes are often shown on a relative scale because the qualitative shape — where a curve peaks, changes sign or decays — is what matters for learning.
Conventions
- Theta is quoted per calendar day.
- Vega is quoted per one percentage-point change in implied volatility.
- Rho is quoted per one percentage-point change in the risk-free rate.
- Rupee figures scale the per-share value by lot size and number of lots, and exclude brokerage, STT, exchange and statutory charges.
- Indicator formulas follow their original published definitions; where a common variant exists, we say so.
Limitations
Black-Scholes assumes constant volatility, continuous trading and no early exercise — none of which hold exactly in a real market. Indicators are descriptive summaries of past prices and predict nothing. Treat every figure on these sites as a teaching aid, not a trading input.
Published 9 July 2026.