The Lazy Reader

Options price is affected by several factors including changes in the underlying asset price, time to expiration, market supply and demand, interest rates, economic and geopolitical events, and investor sentiment. The factors for which there is a quantitative change in price are called Greeks i.e. Delta, Gamma, Vega & Theta. Today we will talk about  Delta  !! What is Delta? Delta is a key metric in options trading that measures the change in the price of an option relative to a change in the underlying asset. It represents the expected movement of an option's price for every one-point move in the underlying stock or asset. How to read Delta ?? It is expressed as a decimal between -1 to 1. Here is how to interpret option delta: Call Option Delta : A call option delta of 0.5 means that the option has a 50% chance of expiring in the money. A delta value greater than 0.5 indicates that the option is likely to increase in value if the underlying asset increases. Put