We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.
Key takeaways from this chapter
- Option Greeks are forces that influence the premium of an option
- Delta is an Option Greek that captures the effect of the direction of the market
- Call option delta varies between 0 and 1; some traders prefer to use 0 to 100.
- Put option delta varies between -1 and 0 (-100 to 0)
- The negative delta value for a Put Option indicates that the option premium and underlying value move in the opposite direction
- ATM options have a delta of 0.5
- ITM option has a delta of close to 1
- OTM options have a delta of close to 0.
is another video coming in this module? One with the factors that influence delta movement?
Yeah, more coming out soon.
Explained very nicely. Waiting for the next video.
Will be up soon.
hi, is there a calculator for computing delta value of an option? can you mention it, if there is?
It’s called the Black & Scholes calculator. Do check here – https://web.sensibull.com
I don’t come from Maths backgroung. seems ‘Bahut dimag lagana padega ye seekhne ke liye’.
But we have tried to simplify it as much as possible 🙂
when this videos coming karthik eagerly waiting! I appreciate your hard work, may god doesn’t give what you want! & gives you what you haven’t dreamt off!!
Mayank, the entire video series is out, check this – https://www.youtube.com/watch?v=-mO0YOTcCiQ&list=PLX2SHiKfualFiusiT9G5uE9jU3vetvW2x
During put option delta explanation it says that put option delta is .2 , First of this video indicates that put option delta is -1 to 0. its not clear how put option delta become +.2 . Thanks
You can add up the delta of all the positions, which will increase the deltas.
Hi Karthik,
I have been through your videos, all these concepts are explained very nicely, i have understood the concepts.
do you have any videos regarding the selection of proper stocks for option trading by studying the chart of the underlying scrip or do you recommend some media where i can study and learn about these?
You can check this if it helps, Avinash – https://www.youtube.com/watch?v=dMjce5P4j-Y&list=PLX2SHiKfualE4o4joBMXM_YHGBKnZSQbs
Not exactly what you are asking for, but not entirely off either 🙂
I want to learn iron otion
You mean this? https://zerodha.com/varsity/chapter/iron-condor/
Can You Make A Practical Detailed Video on Future, Option Selling and Buying In Real markets, to Know How really it Works
Check this Nitin – https://www.youtube.com/@varsitybyzerodha
Any software for Calculations on Greeks and chart it real time like graph, Sensibull give delta theta and gamma value but it says both call and put of same strike will have same value but it’s not in actual and also has no graph for strike it’s just numbers in column and you can’t store the value if you need the previous comparison
Ah, I’ve not used anything apart from Sensibull, so cant really suggest anything.
Hello
While trying to take a new Options position, I want to create short Strangle which is having delta of 0.2 (or -0.2). I could not somehow find the delta in options chain. Can you help me understand where can I readily find it?
Thx
Sameer
Sameer, checkout Sensibull, they will provide greeks for your reference.