When Buying Options There's A Few Things To Do And One Of Th...
When Buying Options There's A Few Things To Do And One Of The Most Important Factors Is The Delta
What is Delta?
Delta is the ratio that compares the change in the price of an asset, to the ratio change in the price of its stock. For example, if a stock option has a delta value of 0.65, this means that if the explanation stock price in price by $1 per share, the option on it will rise by $0.65 per share, all else Being equal. Delta values can be positive or negative on the type of option. For example, the delta for a call option always ranges from 0 to 1 because as the biggest asset price, call options changed in price. put option deltas always range from -1 TO 0 BECAUSES THE PUT SECURITIES SECURITIES, THE VALUE OF PUT OPTIONS TOURISM
Delta values can be positive or negative on the type of option. For example, the delta for a call option always ranges from 0 to 1 because as the biggest asset price, call options changed in price. put option deltas always range from -1 TO 0 BECAUSES THE COURSES SECURITIES, THE VALUE OF PUT OPTIONS ADVANCES.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Trader-101 OP : so what that means is when you're looking at a call option and it reads .50 on that option underneath the delta I mean for every dollar that that option or that stock increases she's going to get fifty cents for every dollar and for put options and they're the exact same except for they read at negative numbers so negative 51 mean you're getting $0.50 on a dollar for every dollar it goes down
Kittykiki : Thamks! Help me a lot![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
MusikBox : Wish I'm going to study it now
Lou Blacksail : holy shit. no wonder my trades arent always making me money although the stock raised in price. then again I cant seem to get out of these debit spreads I'm in til at least july.
Lou Blacksail : anyone know any way to be able to pick single leg prices without having to purchase the 2 legs of debit spreads separate?
jt compher : PRETTY SURE IF DELTA IS. 65 THEN FOR EACH DOLLAR IT DOWN IT YOUR VALUE WILL WILLING 65 .65×100 SHARES THAT YOU OWN IN A CALL OPTION EQUALS $65.