Delta

An area of the south-central United States extending on either side of the Mississippi River from Memphis, Tennessee, to Vicksburg, Mississippi. An important cotton-producing region, it is noted for its folk culture, especially as the home of the earliest blues music.

 

The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the "hedge ratio".

Investopedia Says:
For example, with respect to call options, a delta of 0.7 means that for every $1 the underlying stock increases, the call option will increase by $0.70.

Put option deltas, on the other hand, will be negative, because as the underlying security increases, the value of the option will decrease. So a put option with a delta of -0.7 will decrease by $0.70 for every $1 the underlying increases in price.

As an in-the-money call option nears expiration, it will approach a delta of 1.00, and as an in-the-money put option nears expiration, it will approach a delta of -1.00.

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Technical Analysis term used in measuring the interaction between the price of an option premium and the price of the underlying security or futures contract. An option that changes in premium by $1 for every $2 in the price of the underlying security has a delta of 0.05. An At the Money option has a delta value near 0.05. The delta rises toward 1.0 for In the Money options and approaches zero for options that are Out of the Money. Compare with gamma, which is the sensitivity of an option's delta to small changes in the price of the underlying instrument.

delta	Delta 410
Delta 1010	Delta Faucet