Option Delta Explained: Sensitivity, Not Probability
https://youtu.be/3aqtuBoJ_ms
Delta is sensitivity not a guaranteed probability #Shorts
Delta describes an estimated local price sensitivity. Suppose a call option has a delta of zero point four and the underlying rises by one dollar. Holding other inputs constant, the first order estimate is a forty cent rise in the quoted option premium per share. For a standard contract covering one hundred shares, that is approximately forty do...
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