Comment on The Option Greeks (Delta) Part 1

Ragunathan commented on 26 May 2015, 12:52 PM

Hi Karthik
Your contents are very lucid that a layman in the Dalal Street can know more about the options trading.
This chapter particularly

//the option is gaining more value than the underlying itself. Remember the option is a derivative contract, it derives its value from its respective underlying, hence it can never move faster than the underlying. If the delta is 1 (which is the maximum delta value) it signifies that the option is moving in line with the underlying which is acceptable, but a value higher than 1 does not make sense. For this reason the delta of an option is fixed to a maximum value of 1 or 100.//

its a fantastic explanation about the delta value. Thanks for the contents. Need More classes like this.

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