What is Delta in Options?

Delta measures how much an option’s premium is expected to change when the price of the underlying asset changes by one unit (assuming other factors remain unchanged).

Several traders use Delta as an indicator of an option’s sensitivity to the underlying price.

Generally, in a:

• Call option, the Delta ranges from 0 to 1.

and

• Put option, the Delta ranges from -1 to 0.

For example, suppose a call option has a Delta of 0.50. Now, a ₹1 increase in the underlying price may increase the option premium by about ₹0.50.

Want to Trade Options using Delta?

Track Delta and all Greeks live on Trade246. Gain access to advanced TradingView charts and track real-time NFO prices. Get started today at zero brokerage and avail of a leverage of up to 500X margin. Start trading with a minimum deposit as low as ₹1,000.