Comment on The Option Greeks (Delta) Part 1

Ram commented on 27 Aug 2018, 09:20 AM

Put options
Case 2: Nifty is expected to move to 8230
Expected change = 8268 – 8230= 38
Delta = – 0.55
= -0.55*38
= -20.9

Here wouldn’t it be accurate if we subtract the other way round ,that is 8230 – 8268 = – 38 .So the premium automatically comes positive as well ,
-0.55 * -38 = 20.9. There it will be added anyway ,.instead of having a minus sign and still adding the value .

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