Delta

(redirected from Delta connection)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia, Wikipedia.

Delta

The ratio of the change in price of an option to the change in price of the underlying asset. Also called the hedge ratio. Applies to derivative products. For a call option on a stock, a delta of 0.50 means that for every $1.00 that the stock goes up, the option price rises by $0.50. As options near expiration, in-the-money call option contracts approach a delta of 1.0, while in-the-money put options approach a delta of -1. See: hedge ratio, neutral hedge. Call deltas range from 0.00 to +1.00; put deltas range from 0.00 to -1.00. If the call delta is 0.69, the put delta is -0.31 (call delta minus 1 equals put delta; 0.69 -1 =-0.31).

delta

The change in the price of an option that results from a one-point change in the price of the underlying stock. For example, a delta of 0.5 indicates that the option will rise in price by 1/2 point (50¢) for each 1-point ($1) rise in the price of the underlying stock. Call options have positive deltas; put options have negative deltas.

Delta.

The relationship between an option's price and the price of the underlying stock or futures contract is called its delta.

If the delta is 1, for example, the relationship of the prices is 1 to 1. That means there's a $1 change in the option price for every $1 change in the price of the underlying instrument.

With a call option, an increase in the price of an underlying instrument typically results in an increase in the price of the option. An increase in a put option's price is usually triggered by a decrease in the price of the underlying instrument, since investors buy put options expecting its price to fall.

References in periodicals archive ?
In February, Delta Connection set a record of three days without a cancellation, flying more than 7,250 flights during a roughly 88-hour period.
CRJ aircraft have been in service with Delta Connection carriers since 1993 when Comair became the first North American airline to operate the CRJ100 regional jet.
Monday through Friday and will be operated by Delta Connection partner, Compass Airlines using E-175 aircraft which accommodate 76 passengers in 12 First Class, 12 Economy Comfort and 52 Economy seats.
Union-represented flight attendants working for Delta Connection contract carrier Compass Airlines have requested a proffer of arbitration from the National Mediation Board, indicating willingness to strike should management fail to negotiate a new agreement for the nearly 450 Flight Attendants, their union said.
34 additional dual-class regional jet aircraft and for the early termination of 66 Bombardier CRJ200 regional jet aircraft under its existing Delta Connection Agreements.
A recent government report found that Delta Connection Flight 5283 from New York to Washington arrived late 100% of the time at Reagan National Airport.
Delta Air Lines (NYSE:DAL) and ExpressJet have announced that all ExpressJet Delta Connection operations will be ceased from 1 September 2008.
Comair operates as Delta Connection and is a wholly owned subsidiary of Delta Air Lines.