Delta
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| The amount by which the price of an option changes for every dollar move in the underlying instrument. Delta measures the sensitivity of the option’s value to a change in the price of the underlying. |
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Additional Comments:
Delta is related to the distance from the current market price either in the money or out of the money. The farther in the money an option becomes, the stronger the delta.
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Related Terms: | ||
Gamma The speed by which delta changes compared with the speed by which the underlying asset is ... In the Money (ITM) If you were to exercise an option and it would generate a profit at the ... Delta Neutral Refers to an options position constructed so that the profitability of the position relies on the ... | ||
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