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In this series, TradeKing’s Brian Overby explains the “Greeks” most popular among options traders. This video discusses delta, the Greek that measures (theoretically) how changes in the underlying stock price are likely to impact the option’s price.
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PLEASE READ THESE DISCLAIMERS:
The Greeks represent the consensus of the marketplace as to how the option will react to changes in certain variables associated with the pricing of an option contract. While Delta represents the consensus of the marketplace as to the theoretical price movement of the option relative to the underlying security there is no guarantee that either of these forecasts will be correct.
Online trading has inherent risks due to system response and access times that vary due to market conditions, system performance and other factors. An investor should understand these and additional risks before trading.