How do you benefit from Options Delta

Today, we are going to look at the Greek parameter Option Delta. Traders use options Delta in several ways. Learn how to benefit from Option Delta. Delta values can be positive or negative depending on the type of option. The delta for a call option ranges from 0 to 1. When the underlying asset increases in price, call options increase in price. Put […]

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Delta the Probability of Profit

Elaborating on Delta and probabilities requires delving into a bit of option theory. I’m not an expert on statistics by any stretch, but hopefully the following explanation helps. Given a coin flip (or some other random process that can result in one of two outcomes) that has a perfect 50-50 probability of landing on heads or tails (the probability of […]

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What factors does influence Options Pricing

One of the main factors of Options Pricing is the move of the underlying. The more volatile the underlying is the more expensive the option become. There are other factor which determines the price of the option as well As we approach the core of earnings season, and if you are going to trade options around such events, it is vital […]

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The Power of Options Delta

Options Delta is a number that measures how much the theoretical value of an option will change if the underlying stock moves up or down $1.00. Positive delta means that the option position will rise in value if the stock price rises, and drop in value if the stock price falls. Negative delta means that the option position will theoretically […]

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