Glossary/ Options
Options
Delta
How much the option price moves for a one-point move in the underlying. A delta of 0.5 means roughly half a point of option for one point of index.
Where this comes up
Lessons that use the term in context, which is usually more useful than the definition on its own.
- Delta, in plain language — How much the option moves when the underlying moves.
- Vega and implied volatility — The part that moves your option when price does not.
- Vertical spreads — Capping both ends on purpose, and what it costs.
- Expiry day mechanics — Settlement, exercise and what actually happens at the close.
Nearby terms
Option chain · Payoff diagram · Premium · Put option · Rollover · Spread (strategy)