What is Delta?
Roughly how much an option's price changes when the underlying rises $1; near 1 deep in the money, near 0 far out of the money.
Learn “Delta” in an animated lesson
- Hedging StrategiesDelta Hedging and Dynamic Rebalancing
After selling an option, use the stock to offset its price risk. But Delta changes with the stock price, so the hedge has to keep adjusting.
- Advanced Option StrategiesDelta and Gamma: An Option's Speed and Acceleration
For every $1 the stock moves, how much does the option move? That "speed" is Delta. The speed itself changes too, and how fast it changes is Gamma.
- Advanced Option StrategiesChoosing a Strategy from Your View
Answer two questions first: do you think it'll rise, fall or stay put? Will volatility grow or shrink? The answers lead you to the matching strategy.
- Options: Next StepsLEAPS Call vs. Short-Dated Call
For the same rise in the stock, why do a 30-day option and a 730-day LEAPS behave so differently?
Related terms
See how “Delta” works for yourself with an animation you can drag and play.
Go to “Delta Hedging and Dynamic Rebalancing”