Delta is a measure of how much an option's price will change in response to a one-point move in the underlying asset. It is expressed as a percentage and calculated by dividing the change in the option's price by the change in the underlying security's price.For example, if an option has a delta of .50, that means that for every $1 move up or down in the underlying stock, the option's price will move up or down by 50 cents.Since delta changes as an option gets closer to expiration and as volatility changes, it can be used to help traders assess their risk exposure and make adjustments to their positions accordingly.Delta measures the sensitivity of an option's price to changes in the underlying security's price. A high delta means that an option will move more in price with the underlying security. A low delta means that an option will move less in price with the underlying security.An option's delta is always positive and never negative. Delta can be negative if the option is out of the money.
