Home
Stocks Simplified Blog
What are Stocks?
Fundamental Analysis
Technical Analysis
Portfolio Management
Options
Spreads
Bonus
Brokers
Contact Us
Free Newsletter
Chart Patterns
Other Money Sites
Why invest in stocks
Stock Trend
YOUR success
Stock chart settings
Oscillators
Different trading types
Bad trades
candlestick patterns
stock market articles
Option Greeks
Investing Goals
Stock Orders
Financial Ratios
Webmasters
Online Option
Stock Market Reviews
Taxes
Mutual Funds

Stock option Delta


The stock option Delta is a greek that is designed to help you figure out the price an option should be trading at for every 1 point move in the stock price. For example if the Delta is .7 then for every dollar the stock moves up the option will move up $.7.






Call options will have a positive value and the puts have a negative value. That is because it indicates how much the option will move if the stock goes up. If this chart represented a 1 point down move the calls would be negative and the puts would be positive.

The delta gets bigger the farther in the money you go. The far out of the money options have a low Delta, while the options far in the money have a large delta. You can also estimate the price of the stock by figuring out where the the delta hits .5.



footer for option delta page