Delta
How much an option's price is expected to change for a one-unit move in the underlying asset.
In plain English
How much an option's price is expected to change for a one-unit move in the underlying asset.
Delta measures an option's sensitivity to the price of what it is based on. A delta of 0.50 means the option moves about half as much as the underlying. Call options have positive deltas; puts have negative deltas.
Delta is also used as a rough guess of the probability an option ends up in the money. Traders sum deltas across positions to see their overall directional bet.
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