The term leverage is misleading in its function as a dynamic indicator. Leverage only indicates how many warrants an investor can buy for the current price of the respective underlying asset. It therefore does not indicate by how many percent a call/put increases in value if its underlying asset increases/decreases in price by one percent. It is rather an indicator of the investor’s degree of investment. The key figure omega, which is also called effective leverage, corresponds to the conventional concept of leverage. Mathematically, the omega corresponds to the product of the delta and the leverage, which gives rise to the raison d’être of the leverage ratio.