Glossary
Delta
Delta is an option Greek that estimates how much an option price may change when the underlying moves.
Written byAdmin
Reviewed forClarity and risk framing
Last updated2026-05-04
Definition
Delta estimates how much an option price may change for a $1 move in the underlying asset, all else equal.
Real Example
A call with a 0.50 delta may gain about $0.50 if the stock rises $1. A put often has negative delta because it generally gains value when the stock falls.
Risks
Delta changes as price, time, and volatility change. It should not be treated as a fixed forecast.
FAQ
Is delta the probability an option expires in the money?
Some traders use delta as a rough proxy, but it is not the same thing as a true probability forecast.