Chittorgarh.com Logo
Loading...

Delta Option Greek

Delta measures by how much the price of an Option change with change in the price of its underlying.

Zerodha (Trade with the best stock broker)

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

Zerodha (India's Best & No. 1 Broker)

  Special Offer - Free Equity Delivery and Mutual Funds

  • Brokerage-free equity delivery trades.
  • Brokerage-free Direct Mutual Fund.
  • Pay ₹20 per trade for Intraday & F&O.
  • The best trading platform in India.

Open Instant Demat Account Read Reviews


Comments

Add a public comment...