The change in price of a call option for every one-point move in the price of the underlying security. also called hedge ratio.

Use delta in a sentence

The manager was happy when he realized his elasticity delta was one half because that meant that he could continue to raise prices.

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The delta was mentioned by the trader but his client did not understand so he tried explaining the relationship of the underlying securities.

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When the stockbroker saw that the car company had made large profits in the previous quarter, he knew that many investors who had bought an option to buy the stock would be calling him to sell their option to profit off the high delta.

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delta neutral Delta One