Understanding Delta Delta is a measure of an option's sensitivity to price changes in the underlying asset, expressed as a value between -1 and 1. A delta of 0.5, for example, indicates that the ...

You can also hedge options with options. For example, if you purchase 10 out-of-the-money calls, each call having a delta of +40, your delta position is +400. You could hedge your delta risk by ...

Delta also reflects the probability of an option finishing in the money at expiration. For instance, a delta of 0.7 suggests a 70% chance that the option will expire profitably.