Netizens have the following answers, which are as follows:
1st answer: --
Is this because I don't understand the book, or can't do the homework?
delta = dc ds, c denotes the ** of the call. It is the ratio of the difference in the real ** change, not the ratio of the rate of return.
Suppose this option is ATM, and the SSE 50 is 25 yuan, **2815% is an increase of 070,375 yuan. And the option ** changed by 04623 yuan. Such a long time of "delta"The value is 04623/0.70375 = 0.6569 (of course this can't be called delta anymore).
Growth refers to absolute values, not yields.
2nd answer: --
Option delta problem sharing?
Delta is an important indicator in options, which reflects the relationship between options and changes in the underlying asset. Understanding the meaning of delta and applying it flexibly is important for investment decisions.
What can options delta do?
1. Change: The delta coefficient can tell the trader how the option will change if the underlying asset is *** or **. For example, if a call option has a delta of 07, which means that if the underlying asset ***1 unit, the option is expected to be **07 units.
2. Risk Management: The delta coefficient can help traders assess the risk of their positions when the market is volatile. Traders can adjust their positions based on the delta value to hedge or adjust their risk exposure.
3. Develop a trading strategy: Traders can develop a trading strategy based on the delta coefficient. For example, a trader looking to profit from the underlying asset can opt for a call option with a higher delta for greater volatility sensitivity.
What is option delta?
Delta value, also known as delta value, refers to the magnitude of the change in the option when the underlying asset changesIt is expressed by the formula: delta = change in option ** change in spot ** of the underlying asset. When the delta of a call option is positive (in the range between 0 and +1), * will rise, and when the delta of a put option is negative (between -1 and 0), * will decrease, and the delta of an equivalent call option will approach 05, while the in-the-money put option is close to -05。
How to calculate option delta?
The formula is: delta = option ** change * underlying *** change.
The approximate in-the-money probability of an option at the expiration date is very important for traders. For example, a call contract has a delta of 02, which means that at the current point in time, the real probability of its maturity date is 20%. This is a simple and feasible way to determine the degree of actual value and out-of-the-money of an option contract on the expiration date.
Option operation skills sharing.
When the direction judgment is wrong, it is necessary to have a good attitude to stop loss in time, and any investment has the need to stop loss, and ETF options t 0 two-way trading. The investment in each transaction is not large, and timely stop loss is more conducive to grasping the next operation opportunity.
*You can choose to open a subscription contract that is lower than the current price of the underlying price of the first and second tranches (put contracts can be selected to be higher than the current price of the first and second tranches), because the contract is more volatile, moderately and the correct direction is more profitable.
Sell open call and put contracts can choose the contract ** more expensive contract, the seller is a margin trading mechanism, the same margin, sell a more expensive contract, when the contract **, the profit margin is greater.
The third answer: --
The Greek alphabet is the Xi basis of all option strategies and is the quantitative factor that determines the option**!
There are 4 Greek letters, which are delta for stock price, gamma for stock price, theta for time, and vega for volatility.
This article focuses on what you have learned about delta: delta is the most commonly used Greek letter in options trading, and almost every options trade needs to pay attention to delta!
Delta Basics.
1. delta represents the change value of the option corresponding to the right ** for every $1 change in the stock price, and ta is a number that changes between -1 and 1.
Example: delta=plus 03. For every **$1 in stock price, the corresponding option ***03；For every **$1 in stock price, the corresponding option is ***03
delta=minus 03. For every **$1 in stock price, the corresponding option ***03；For every **$1 in stock price, the corresponding option is ***03
2. The delta symbols of call and put are different, the delta of call is positive, and the delta of put is negative.
The delta value displayed by the brokerage is displayed from the buyer's perspective, and if you are a seller, you need to add a negative sign in front of the delta.
For example, call if the buyer's delta is 03. The corresponding call seller delta is -03
Put buyer delta if -07, corresponding to put the seller delta is 07
To sum it up: the bullish strategy delta is positive, and the bearish strategy delta is negative.
3. The absolute value of delta reflects the sensitivity of the option** to the stock price.
For example, if you take an AAPL option as an example, if you buy a call delta(0.)688) is much higher than the delta(0.299）
The relationship between delta and strike price.
Call Option: The more ITM options, the closer the delta is to 1;The more OTM the option delta is closer to 0;
Put Option: The more itm an option, the closer the delta is to -1;The more OTM the option delta is closer to 0;
The delta of ATM options is 05
If you buy an option with a delta of 1, the effect is the same as holding the underlying stock, and the underlying stock will increase by 1 dollar for each stock.
If you buy an option with a delta of 0, the change in the underlying stock** will not affect the option**.
Delta high-end applications.
1. The delta value of the option combination strategy is the sum of the delta values of each leg.
You only need to look at the delta value of the final portfolio to see whether the combination is bullish or bearish, and the impact of the stock price on the return of the option strategy.
Take the synthetic long strategy as an example: choose an option with the same expiration time and the same strike price, and simulate the effect of buying 100 shares of the underlying stock with a very small amount by buying call + selling put.
The first leg buys the delta0 of the call543, plus delta0 of the second leg to sell put457, just equal to 1, that is, the stock price is ** ** 1 yuan, and the corresponding option is ** ** 1 yuan.
The option premium paid to buy the call plus the option premium earned back by selling the put is equivalent to only $130, which can be simulated at 182The effect of buying 5 shares for 100 shares (which costs $18250) TSLA!
PS: This option strategy is really suitable for ** friends.
2. Judge the probability of making money by delta.
delta=0.5, which means that the option has a 50% probability of becoming ITM and a 50% probability of becoming OTM
delta=0.1, which means that the option has a 10% probability of becoming ITM and a 90% probability of becoming OTM
delta=0.9, which means that there is a 90% probability that the option will become ITM and a 10% probability that it will become OTM
I've been doing sellput strategies when choosing a delta of 01 option trade, which means that the trade has a 90% probability of making money (win rate).
There is a saying that delta is equal to 03 The return-to-risk ratio of the seller of the option is the highest, you can refer to the following. It's just that I'm more interested in the win rate, and I usually choose delta equal to 01 of the following
The above text mainly discusses the meaning, calculation method and application scenarios of option delta, and shares some trading strategies and tips. Here's my summary and thoughts on this article::
1.Delta is a very important Greek letter in options trading, which indicates the relationship between the change in the underlying asset and the change in the option. A positive delta value indicates a call option, and a negative delta value indicates a put option. In trading, we usually focus on the absolute value of delta, which reflects the sensitivity of the option to changes in the underlying asset.
2.The relationship between the absolute value of delta and the strike price is also worth paying attention to. The delta of an ITM option is close to 1, while the delta of an OTM option is close to 0. Therefore, when an investor chooses an option with an exercise price close to the underlying asset**, the delta value can be used to determine the correlation between the option return and the change in the underlying asset**.
3.The high-level application of delta mainly includes the delta value calculation of the combination strategy and the probability of making money through delta. The risk and return characteristics of the portfolio can be judged through the delta value of the portfolio strategy, and the probability of making money can be used as a reference for investors.
Regarding the issue of options, it is recommended that you read the following book, which can be called an introductory classic.
In short, delta is a very important indicator in options trading, and investors need to grasp its meaning, calculation method and application scenarios, and use it flexibly according to the actual situation. At the same time, investors also need to pay attention to the market** and their own mentality, constantly summarize lessons and lessons, and improve their trading level.
I am a leek farmer (below), long-term ** programmatic trading strategy, follow me to get more ** related information and experience.