when buying options there's a few things to consider and one...
when buying options there's a few things to consider 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 corresponding 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 underlying stock increases 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 depending on the type of option. For example, the delta for a call option always ranges from 0 to 1 because as the underlying asset increases in price, call options increase in price. put option deltas always range from -1 to 0 because as the underlying security increases, the value of put options decrease
Delta values can be positive or negative depending on the type of option. For example, the delta for a Call option always ranges from 0 to 1 because as the underlying asset increases in price, call options increase in price. put option deltas always range from -1 to 0 because as the underlying security increases, the value of put options decrease.
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Trader-101 楼主 : 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![[呲牙]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "呲牙")
MusikBox : Wish I knew I’m trying 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 rises it your value will increase 65 dollars. .65×100 shares that you own in a call option equals $65.