Option Delta Explained (The Basics, Probabilities & More)

====

The delta of an option is one of the four primary "option greeks." The other three are gamma, theta, and vega.

An option's delta is a measure of the option's directional exposure.

In this video, I explain what an option's delta is and give numerous examples for puts and calls, as well as show how options at various delta levels are more or less sensitive to changes in the stock price.

Additionally, I discuss more advanced concepts, such as how the delta of an option is the approximate probability of the option expiring in-the-money, as well as the relationship between an option's delta and strike price.

Be sure to leave a comment down below with any questions you may have!

=== RECOMMENDED VIDEOS/RESOURCES ===

[dushyantkhinchi]

Such an underrated channel. You did a good job, Sir.

[MrCurtis]

That was the easiest most clear and consise explanation of delta I ever heard! You are a great teacher my friend!

[xanderseyes]

- your content is so upscale. I have learnt so much and the way how you explain everything makes it a lot easier to grasp. Also I must say, I really appreciate the video quality and video editing. It is so neat and clean! Thank you for all the information you share.

[goodideaatthetime]

Dude! Absolutely amazing explanations. I think you are the best teacher on the Tube! You make this super complicated subject so easy to understand. I can't thank you enough. I have learned more from you in the past couple of weeks than all my years in school. KEEP UP THE GOOD WORK!

[HefTrade]

the colloquial clarification at the end was helpful, Chris. I would be that guy saying, "i'm selling the negative point zero seven five delta put option". Thanks for another great lesson!

[justinkaten]

Love your teaching style, best out there I've seen for me at least..

[informationeagle]

One of the best and clearest basic explanations of Delta that I've seen anywhere.

[brianh]

I have watched so many options videos online and to me, your videos are the best. You explain complex concepts in an easy to understand way. Big fan, keep them coming please!!

[dontswin]

You are a great teacher! Wish I found you years ago. You cover a lot of material so I have to rewind a few times but everything is coming together. I have been trading options for a little bit, past few months. This is 20 mins well spent, Thank You so much Sir!

[PurpsFilms]

Dude I cannot thank you enough for your educational videos on options. I started studying options the last week or so and this channel has single handedly helped me so much understanding all the different concepts, how the math works, and is easy to follow. Thanks for you hard work to spread info to others

[WaveWatchTrading]

This is THE BEST explanation of delta I've ever seen!!!

[craigsdaytrips]

Thank you Chris for explaining in very simple terms. It has really helped me with my options trading knowledge

[David_BCFC-ENGLAND]

Excellent explanation, already watched both of your options trading for beginners, the Bull Call Spread video and working my way through the Greeks then onto IV explained. Amazing that you take time out to offer these tutorials for zero fee, well done, you are helping so many novice traders understand a quite complex subject that would usually be a big headache to understand

[loreall.]

I bought an Options Trading for Dummies book and I learned more from your videos for free. Thank you so much, Chris!

[mthobisimhlungu]

Thank you for the clear explanation. I'm definitely subscribed and bingeing on the content. This is the first explanation of Greeks that I fully understood to the point where I could trade a demo to test some options strategies. THANK YOU

[mabitsilegodi]

Your videos are so easy to follow and well presented. Thank you

[samuimuscle]

Great job! I am not sure if would reading a book how long it going to take me thoroughly vs 14:20 minutes from this VDO. Keep up good work! This is the speed that I like the most from your VDOs.

[helowolf]

Your options videos are the BEST. Second to none. So good that I've gotten into habit of smashing the 'like' button right when one starts, just in case I were to forget. Like for right now, for example ;) Listening to you has made me tens of thousands of dollars the last few months. Totally up'd my game. Thank YOU!

[ehleesbabay]

Super helpful, especially the examples. Thank you!

[schries]

Thanks Chris for very clear explanation! You have a great way of teaching bro!