Delta (for Call options)
For beginners, Delta can be use to track the sensitivity of an option to its underlying stock price change, using $1 as the basis. The further away Delta is from zero, the more valuable the option is.
For call options, it has a postive Delta value between 0 to 1. Delta get closer to 0 for OTM calls options, and Delta get further away from 0 for ITM calls options.
Example: A call option with a Delta of 0.88 means that if the underlying stock price move up by $1, the price of the call option will move up by $0.88.
In the next discussion, we will discuss about Delta (for Put options).
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