Delta

Word: Delta Definition: A measure of the change in an option's price relative to the change in the underlying asset's price. A delta of 0.50 means the option's price will theoretically move $0.50 for every $1 move in the underlying asset. Course: Options Trading Module: Module 2: Options Greeks & Premium Related Terms: Gamma, Theta, Vega, Options Greeks Example Usage: "A call option with a delta of 0.70 will theoretically gain $0.70 if the underlying stock rises by $1." Visual Aid: ✓ Tags: options, greeks, risk measures