What Is Delta In Options Trading

The term delta refers to a number that is calculated for a given option by one of the many options pricing models. This value ranges from 0 to 100 for call options and from 0 to -100 for put options. In options trading, the delta value can be used as an indication of:

The likelihood that the option will expire in-the-money
Holding 100 shares of the underlying stock if the delta value is at the moment 100
The option will increase by 0.25 points if the the underlying stock rises 1 full point given a delta of 25


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