How to Use Delta In Options Trading Like a Pro

How to Use Delta In Options Trading Like a Pro

Intro: 0:00
What Is Delta?: 0:52
Delta and The "Probability ITM" Feature: 3:45
Applying Delta To Decision Making: 7:45
Example: How To Use Delta for The PowerX Strategy & The Wheel Strategy: 8:45

Delta is one of the most important concepts in options trading. But it can be difficult to understand at first, and that's where this video comes in!

I'm going to show you how delta works, what it means for your trades, and how to use it like a pro.

In this video:
- What Is Delta?
- Understanding Delta
- Delta and the "Probability ITM" feature
- Applying delta to decision making
- Example on how to use delta for PowerX Strategy and The Wheel Strategy

When you understand delta in options trading, you will definitely have an edge.

Recommended Links and Videos:

#OptionsTrading #StockMarket #TheWheelStrategy
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[rockwelltradingservices]

I hope you found this video helpful. In the meantime, check out some of these other videos, and if you have any questions let me know in the comments.

Recommended Links and Videos:

[davidmalka]

Markus thanks a lot, the fact that you are German helps a lot because most Americans speaks too fast and it's hard to catch them. Your explanation of Delta was the clearest I saw while trying to learn what is Delta at all.

[mihirshah]

Thank you, Markus! Both delta and its application were explained in a very simple and yet helpful way.

[CR-fyuw]

Great production as always...thank you.

[MrMockingbird]

Hey Markus This is video is very helpful. You explained something 10 other video content makers never explained very well. Please consider a short follow up video explaining Delta with SPY and SPX. Thanks for a good job.

[WesHodges]

Very informative, and I like the styles of your videos. Keep up the good work!

[gloriadefelix]

Thank you so much. That was very clearly explained.

[cmsowp]

Thank you! Miss you at Coffee with Markus. Although Mark is awesome.👍

[brendanquinn]

Thanks for your help marvelous Markus.

[ykenter]

I use delta as one of the main variables in trading the wheel strategy. It would be nice if the software could sort by delta.

[oliverfletcher]

delta is equal to N(d1) in the B-S, the probability of the stock expiring ATM or above is given by N(d2), how can this be? I always understood N(d1) as a conditional probability.

[gordonsallee]

In your video of Delta In Options you use a Call/Put app which shows the Delta of each. I would like to know what that app is and is there a cost associated with acquiring same. Thank you for your considerations, and I really enjoy your videos.

[stiffdrinkmime]

The probability is determined by the market via the option price and underlying price, right? Seems like a silly question, but I just want to clarify for myself and others. I've been comparing historical IV vs realized on various stocks and trying to identify stocks that the market historically overvalues volatility. Is this part of your strategy?

[cjgino]

I notice that the delta in the PXO is usually around 0.05 less than the delta in my Think or Swim platform when I'm selling puts. Any reason for this?

[Markbroyo]

Does anyone know of any good textbooks that discuss everything to know about options?
Keen to get into trading.
Would like to Aquire the knowledge that you would go on to gain if completing a finance degree.
Many thanks

[bachmann_andreas]

Hi Markus, if Delta equals probability ITM, why does Delta and probability OTM don't add up to 100?

[PanoTerzopoulos]

I’m trying to figure out where to get the Delta do you have an app?

[mima-lxuf]

I will appreciate if you can explain what is Delta?