Delta: Difference between revisions
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1. | 1. ''Options.'' | ||
''Options.'' | |||
Delta is the slope of the curve of option value plotted against underlying asset price. | Delta is the slope of the curve of option value plotted against underlying asset price. | ||
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2. | 2. ''Change - difference.'' | ||
More generally, any change in a variable, especially a financial variable. | More generally, any change in a variable, especially a financial variable. | ||
Or any difference between two related variables. | |||
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* [[Put]] | * [[Put]] | ||
* [[Underlying asset]] | * [[Underlying asset]] | ||
* [[Variable]] | |||
Revision as of 14:52, 6 August 2021
1. Options.
Delta is the slope of the curve of option value plotted against underlying asset price.
Mathematically, it is the first derivative of option value with respect to the underlying asset price.
It ranges between 0 and +/-1, depending on whether the option is a call or a put, and whether we have a long (bought) or short (sold) position in the option.
2. Change - difference.
More generally, any change in a variable, especially a financial variable.
Or any difference between two related variables.
