Option Delta Explained (The Basics, Probabilities & More)

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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!
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[@projectfinance]

✅ New to options trading? Master the essential options trading concepts with the FREE Options Trading for Beginners PDF and email course: geni.us/options-trading-pdf

[@dushyantkhinchi9304]

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

[@projectfinance]

Thank you!

[@paulus_primus]

Totally agree! It's the best channel about options in the world! Author is a real Prometheus of options!!!

[@saintburnsy2468]

100% agree

[@MrCurtis61]

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

[@informationeagle]

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

[@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.

[@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!

[@HefTrade]

Hey chris, do you have any video tutorials on ThinkOrSwim? I just downloaded it to practice trading spreads.

[@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

[@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!

[@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

[@mthobisimhlungu6252]

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

[@WaveWatchTrading007]

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

[@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!

[@justinkaten5316]

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

[@snoopdogAZ]

Your videos are the best. One thing I don't understand and I kept waiting to hear is, Why do traders say they want to be "Delta neutral"

[@loreall.2461]

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

[@nasseem2747]

I will never understand why people go thousands in debt when there is free, valuable, and extremely helpful information such as your videos posted on the internet. Thanks so much for sharing your knowledge.

[@craigsdaytrips5512]

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

[@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.

[@schries]

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

[@ehleesbabay]

Super helpful, especially the examples. Thank you!

[@marianomedina07]

totally underated channel, you really explained how it works. Thank you!

[@Joygre1]

All my questions have been answered. I was struggling with Greeks. New at trading and I am so excited to learn these terms. Thank you!

[@helowolf05]

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!

[@brianh7828]

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!!

[@projectfinance]

Thank you for watching!

[@prabhakarpotu6617]

Excellent presentation and very clear explanation. Excellent teacher

[@saintburnsy2468]

Thanks for yet another great video! Seriously man, I've been learning almost everything that I know about options from you... and I really appreciate it! Keep up the good work m8 👍🏻

[@Smurfin247]

Enjoy your videos…have learned so much…great delivery and precise explanation…thank you

[@brunodrumsnyc]

amazing job, man. thank you for putting all this knowledge out there.

[@danielsurisetty]

Thanks for your clear explanation which will never go off from mind anymore!

[@Reza.thehealthcoach]

this guys is just amazing !! a gem really -everyone these days want to sell courses and do not give any useful information !!

[@JK-vb9ps]

clear and concise explanation. well done chris

[@flyboylipad75]

Great job Chris! Learning heaps on options. Thanks

[@AM-yd5dt]

Thank you Chris for sharing your knowledge with us in easy-to-understand manner.... You have a wealth of knowledge presented in humble terms :-)

[@mabitsilegodi3102]

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

[@projectfinance]

Glad you like them! Thank you for watching.

[@elynzhou7694]

You are great and knowledgeable. i learnt a lot from your channel. Thank you!

[@GuanMin]

bless this channel, explanations are great for understanding !

[@creditpro1280]

Thanks! I really learn so much from your vids.

[@alexaxana7597]

Great explanation! Thank you

[@DariushMaleki]

Thank you. Great video for Option Delta explanation.

[@shikhashersinghyadav475]

Amazing video. I am learning a lot from these videos. Thank you so much.

[@supa007germany]

Thanks a lot for your videos, good educative videos. I have learned a lot through your channel .

[@yc1228]

Great job explaining. Thank you for your videos.

[@rohitindurkar]

Awesome, u r doing great job. Thanks a lot 🙏

[@jerrynix5206]

Happy New Year Chris!

[@carlosnoname1427]

Amazing explanation !!!! thank you !

[@prajay83]

Wonderful explanation..understood delta clearly

[@savlikanekar]

Nicely explained. Thanks

[@mtsguides]

Hey Chris, can you make a video on Ratio spreads and management strategies related to ratio spreads ?

[@yahyajwad]

Wow . Amazing video and very easy to understand. Thanks bro 👍

[@victormiranda9748]

You're a great teacher

[@velissalewis5321]

Thanks!

[@riteshagarwal2127]

your teaching is beyond amazing.. someday i am gonna pay you real good amount as the education fees for immense knowledge shared by you

[@adage3256]

I have learnt a lot from your video series and graduated from being an option buyer to option seller most of the time. I feel lot more confident with my trades, based on the core concepts you are teaching. Thanks much, have a good 4th weekend.

[@idunusegoogleplus]

U been profitable?

[@supersaiyanmuslim7569]

Thanks again Chris! Love your videos man!

[@preferredcustomer8273]

Thank you for the last couple minutes. Really cleared that up for me.

[@projectfinance]

Of course! Glad I could help.

[@shanellechambers6308]

Agreed. The last minute in particular cleared up a lot of confusion. Subscribing!

[@charlierobles316]

Easy to understand but gotta watch over

[@SusieO]

Excellent video. Thanks very much.

[@chairman6652]

Thanks Chris . I've always struggled with Delta and Extrinsic Value in regards to selling Premium ✌️

[@KatieLou_johnson]

Really appreciate this video!

[@razdingz]

Awesome teacher !

[@MegaRisenshine]

Ty sir understand now at least on delta

[@paridhirastogi6708]

Great work, thanks.

[@kumaralok1803]

very informative. good job

[@enricosaccheggiani3192]

well explained . good job thanks a lot

[@gregoryphillips4459]

Thank you. Good information.

[@hws2152]

Excellent video for learner, Sir I face some challenge while try to calculate positive skew and negative skew and their relationship with expiry. could you assist me to overcome these challenge through your guidence

[@jamilakalilj]

This is awesome man. Thank you!

[@riskedcapital]

Great vid Chris!

[@Smallqueendom]

I had a 💡 moment. Thank you Chris!

[@danbelchar9373]

Great explanation, i watched twice

[@troyflowers8605]

Great video! I understand delta a bit better

[@Sarasdad91]

Another great video, Chris, thank you...

[@davidpearce4838]

This has been excellent for my learning. Thanks Chris.

[@projectfinance]

You're welcome and I'm glad to hear it!

[@dianapelaez5894]

I learn so much from your videos, thank you for explaining options!!!!

[@projectfinance]

You're welcome Diana! I'm so glad it helped!

[@dantecapozzola1353]

Really helpful.

[@sergheistiroi9333]

Thanks for explanation

[@PalwankarRavi]

Excellent. Thx a lot.

[@projectfinance]

You're welcome! Thanks for watching.

[@rooooony]

Hey great explanation. One thing I don’t understand, if the stock price goes up a dollar, would the value of my options contract increase by one hundred dollars? Why would it only goes up by the delta? Thanks for the clarification and keep up the great work!

[@kk3528]

Very good video 👌

[@Polettie]

Great video ... Thanks ..

[@itz_abi1261]

I enjoy watching your videos , learned a lot. I have a a question on a loosinh share. Say I own 200 shares and my avg price is 34 , now the stock is trading at 28 dollars , I dont want to sell because I positive this share will go up. My question is can I do covered call against my 200 shares ??

[@chewkeat]

Thank you!

[@tf3908]

OMG! I GET IT! THANK YOU THANK YOU!

[@tushkyd6348]

Hey there i just wanted to know do you guys teach from basic of stock mrkt to delta options greek course for US and Canadian mrkt if yes pls update

[@rishipatel7998]

SIR YOU ARE AMAZING

[@bigspank2085]

I'm going to be honest you just simplified delta to the point. My 5 year old niece could understand it. Keep up the great work and thank you very much I really appreciated this video.💪🏿🤜🏿 Now let's see if I apply those percentages. I also have take into account the strike price. Whether its above or below and by how much . Wow you just made me feel like I found out about the market 😆😆😆

[@bigspank2085]

I also subscribed I had to man this was a D*** good video now onto the other 2 minus theta😅

[@yogeshlad133]

Nice helpful video

[@livingbreed]

Your videos are the best. 👌 Super helpful. Thank you for taking the time to explain for the rest of us. Royce Jacob and another guy - I’ll find his name and edit this comment - are also great. Thank you! 💰🚀

[@mohamedshalaby6280]

Well done!

[@brendanquinn6894]

Thanks Chris.

[@50Options]

Thank you

[@luisfranco7193]

Great video 👍👍👍

[@dineshg8814]

Thank u so much.

[@sivucit]

Hi,
I assume Delta have a play on extrinsic value but not on intrinsic value. Pls advise.

[@nathaniel2153]

Thanks SIR

[@mohamedelwakdy7048]

Thank you sire gr8 job

[@lilwa2]

This video is golden ! Thanks a lot Sir !

[@projectfinance]

Thanks for the comment!

[@olutoyin7602]

You do a great job of explaining in details. I enjoy the slides, very intuitive.

[@projectfinance]

Glad you like them!

[@khalidjaii2]

Do you have a video explaining an example such as 14 Delta strangle?.
Thanks

[@ricklavie7315]

Excellent 👍