What is Option Delta?
Option Delta A measure of the sensitivity of an option’s price to changes in the price of the underlying asset, representing the expected change in option value for a one-unit change in the underlying.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Option Delta” Used in Practice?
Option delta is used by traders to hedge portfolios and gauge directional risk, with values ranging from -1 to 1 for standard options.
Certification Exam Relevance
Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
Learn “Option Delta” Free with Termify
Master Option Delta and 4,071+ professional terms with native pronunciation, IPA transcriptions and career quizzes. 100% free, forever.
Download Free for iOSFrequently Asked Questions
What is Option Delta?
A measure of the sensitivity of an option’s price to changes in the price of the underlying asset, representing the expected change in option value for a one-unit change in the underlying.
Where can I learn this term for free?
Termify is a 100% free professional English app that teaches Option Delta and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.
Last updated: