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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).


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.


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 ?
This is especially the case for those who live in deltaic regions, where it is conceivable that the establishment of a regime that provides immigration rights to climate exiles could be seen as providing incentives for people to make false claims about where they actually live, or for others to rush to buy homes in vulnerable areas.
Breton Sound is a 271,000-ha microtidal estuary located in the Mississippi River deltaic plain of southeast Louisiana; it is bounded to the east by the Mississippi River Gulf Outlet (MRGO) and to the west by the Mississippi River (Fig.
Sandstones Aptian Granites, Gneisses, Schists, Migmatites AGE DEPOSITIONAL BASIN ENVIRONMENT Quaternary Continental Niger Delta Tertiary Basin Pliocene Miocene Oligocene Continental Eocene Estuarine, Shallow marine Paleocene Shallow Marine, deltaic Upper Maastrichtian Fluvio-deltaic Anambra Cretaceous Basin Fluvio-deltaic Shallow Marine, deltaic Shallow Marine, deltaic Campanian Santonian Shallow Marine, deltaic Benue Trough Conician Middle Turonian Shallow Marine Cret.
These zones lay in a deltaic formation of layered sediments starting at depths of 1200' feet to 4500'.
The Narva transgression was followed by a regressive southward progradation of tide-dominated deltaic to estuarine deposits that continued through the Middle Devonian, up to the end of the Givetian (Kurss 1992; Kleesment 1997; Plink-Bjorklund & Bjorklund 1999; Ponten & Plink-Bjorklund 2007; Tanavsuu-Milkeviciene & Plink-Bjorklund 2009).
Firstly, the reservoir sands were deposited in a deltaic environment and individual sands within the reservoir tend to be discontinuous; though the net to gross ratio sand is fairly consistent.
Carbon storage and Late Holocene chronostratigraphy of a Mississippi River deltaic marsh, St Bernard Parish, Louisiana.
Slowly, the flood protection system in New Orleans is being restored; even more slowly, attention is shifting to restoring the coastal deltaic system.
Identifying cryptic tidal influences within deltaic successions: an example from the Marsdenian (Namurian) interval of the Pennine Basin, UK.
If the ocean level rises by one meter, as predicted for this century, Walson warns that "half of the rice produced in the deltaic area of Bangladesh could be lost.
Then for a period of time it was popular to interpret the unit as alluvial fan (Fettke 1938; Bowen 1953; Fuller 1955) or deltaic (Lamb 1911; Bowen 1953; Fuller 1955).
the river has build one of the greatest deltaic systems in the world.