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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 ?
The university spokesman informed that most of the presentations related to Indus river deltaic depositional system and facies were delivered on spot in the field at Dolha Daryah Bridge of Sujawal and Thatta, Shah Bander, Jangiser, Kharochaan, Sajanwary Creek and Keti Bandar.
Mukhtiar Ahmed Mahar Director Centre for Coastal and Deltaic Studies welcomed the participants and highlighted the aims and objectives of this two day field excursion training workshop.
The chief guest Engineer Sadiq Ali Memon District President PPP, Former Minister appreciated the efforts of Centre of Coastal and Deltaic Studies and Federation Handicap International for organizing such a historical event.
The Mianwali and Tredian Formations: An Example of the Triassic Progradational Deltaic System in the Low-Latitude Western Salt Range, Pakistan.
Thus, estuarine and deltaic brackish to saline water influence may have gradually ceased at approximately 0.
The complex creeks network in the Indus Deltaic region, extending over an area of 170 kilometers along the 990-km coastline that Pakistan shares with the Arabian Sea can generate 900 megawatts (MW) of cheap energy, and sufficiently meet the power requirements of Karachi, according to a research conducted by the National Institute of Oceanography (NIO).
The mangroves are the major elements of the deltaic flora and fauna and are an ideal place for the growth of Prawns.
JEDDAH: ARAB NEWSBlessed with scenic beauty, low hills, forest, large lakes, beautiful rivers in deltaic plains, the longest beach on earth, a God-gifted geo-strategic location between SRC and ASEAN and a homogeneous culture, Bangladesh is an ideal place for tourists.
The findings of the report highlight an urgent need of mitigation, adaptations and awareness for the silent majority living in the coastal and deltaic areas of Pakistan.
In the natural cycle of delta switching, an abandoned deltaic lobe erodes and gives rise to a new accreting one.
The Sundarbans is a UNESCO World Heritage site and the largest deltaic mangrove forest in the world with an area of 10,200 sq.
Sampling stations were selected based on terrapin sighting/capture data and habitat preferences reported by Halbrook (2003) and Koza (2006): oyster reef (n = 6), tidal river (n = 3), and deltaic tidal creeks (n = 4).