delta

Definition

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

If an underlying stock has a delta of 0.5, the call option will increase by $0.50 for every $1 increase in the stock.

​ Was this Helpful? YES  NO 1 out of 1 people found this helpful.

Show more usage examples...

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
option elasticity neutral spread