Options Delta Explained: What it is & How to Trade it

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[jameseldridge]

I vow to watch this as many times it takes to understand it fully

[PetStuBa]

wow, you explain things so well !!! well done ! I didn't watch all videos about delta of course, but a to me this is THE best and most clear explanation !!

[keithwisdom]

best explanation.... review a number of videos; and finally after a few minutes understand it

[DimitryLife]

took me a little while to understand the concepts you talked about halfway through the video, but I got it, thanks for the explanation!

[jamesm]

Very interesting video. BUT, if you have 200 shares and sell 4 calls that does not seem to me to be directional neutral, because if the share price is down at expiry then you keep the call premiums (but you may be losing on the share price). However, the share price may gap up and be well ITM at expiration -then you have to buy 200 shares and could lose lots of money.

[ShoresOfHelll]

Really good video. Took me more than an hour and rewinding many times to understand the concept and replicate it in ToS. It would be super helpful if tastytrade would included screen sharing from ToS to explain these concepts in these videos.

[davidlloyd]

these videos for the most part are great info. However, maybe need to SLOW DOWN or NOT put so much info into a 1-3 minute segment so us Novice/Rookies that are 100% new to TOS can try and understand what you are talking about. Also (my MAIN reason for watching these) You need to in depth with Examples (scenario walk through) the Functions. Your only hitting a brief glimpse at each tab does Not teach its' function/uses! So if you could maybe add terminology or example of using said tabs in LAYMAN and SLOW English for the Novice/Rookies like myself that almost know how to use a computer would be most helpful. Any suggestions?

Dave

[alexbarnes]

mike and his whiteboard where were you when I was in school lol

[hankigoe]

why 'bring it on home'? one of my all time fav tunes btw, nice choice

[lauratai.]

For options, Does the delta move per dollar act like this👉🏻 If you have an .80 delta and the stock moved up a dollar, is it .80x100=$80 gain?
Does it work like that?...

[christate]

Great explanation and breakdown as usual. Looking forward to catching up on your latest uploads.

[lawcch]

For bullish market, which one for trader to buy a call stock option either ITM, ATM ad OTM?

[crftr-com]

At the end of the video you mentioned rates of change. Is that to say that delta is the first derivative of the underlying's price and gamma is the second?

[gadgelt]

Thank you very much for the video, but can you please provide some examples on the hedging part, where we have 2 cases of selling call options, and the price increased to a dollar?

[WoodwiseJoe]

Regarding the hedging example that you used, if I am long 200 deltas due to being long 200 shares of stock and I sell 4 ATM .50 delta call options making me delta neutral, the price moves against my position and I'm called away on all 4 now ITM options, does that mean I've basically given myself a hedgy? Wouldn't I be forced to produce 200 more shares of stock?

[ev]

I have a three part hypothetical question.
(Part 1) Lets say I bought a Hertz Put contract for the $1 strike price expiring on 7/2 (2 days from now) for a premium price of $0.01. This contract has a Delta of -0.0616. What this means is that if the current stock price of Hertz, which is at $1.43, drops to $0.43, I would make an unrealized profit of $6.16. Is this correct?

[confluenceify]

If I am buying ITM naked call. What Delta will be good for me? One that cover the cost with 1 point movement in underlying?

[montecarlo]

Hi Mike, your explanation is very clear and have great knowledge in your videos, its an amazing financial job. By the way what is the app or software you use to do the whiteboard ? Need to teach some ppl music theory on my church but some ppl come from so far away and this is a good help. Thanks in advance!

[premrana]

but if you want to earn daily as per trade
write the call option and sell out of the money strike with delta callculation
.10 we considered in india on the friday is .10 to thursday is .01 end of the expiry day

[nononnomonohjghdgdshrsrhsjgd]

is it really possible to collect the premium of short call, if you hedge with buying delta numbers of shares and taking a loan. It seems you have invested in such a strategy. Theoretically, i have read, that the cost of dynamic hedge of short call and preiumm are equal. But it is good, to hear what exactly is the point of full delta hedge by short call, because I dont see where is the profit, if one finance the shares by a loan. How exactly does delta hedge in practice be applied profitably? Thank you for the answer