Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
|
|
Delta measures by how much the price of an Option change with change in the price of its underlying.
Zerodha (Flat Rs 20 Per Trade)
Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.
Delta is an options greek which measures the sensitivity of the price of an Option with a change in the price of underlying. It helps a trader calculate by how much the price of an Option will increase or decrease with a unit change in the price of the underlying. Delta is calculated as-
Delta = Change in the price of the option/ Unit change in the price of the underlying
Suppose the price of an Option moved up from Rs 30 to Rs 40. The value of the underlying increased by Rs 10 then the Delta will be- Rs 10/Rs 10= 1
Delta for Call options is positive between o and 1 while for Put options, it is negative between -1 and 0.
Answered on
Add a public comment...
FREE Intraday Trading (Eq, F&O)
Flat ₹20 Per Trade in F&O
|
|
