Is there any way find out theoritical price of option contracts. sometimes the gap between BID and OFFER is too much and in such cases I need to find theoritical price before placing an order ?
Kite does not provide an out-of-the-box API for calculating the 'theoretical price.' You will need to compute it yourself using models such as the Black-Scholes or Binomial option pricing models. These models require inputs such as spot price, strike price, implied volatility (IV), interest rate, and time to expiry to calculate the theoretical value of option contracts.
For more details, you can refer to the Zerodha Varsity. Additionally, you can use the formula provided here to calculate the Greek values.
For more details, you can refer to the Zerodha Varsity. Additionally, you can use the formula provided here to calculate the Greek values.