Know your Delta (part 3)
So to continue from part one and two where I said in part 1: Delta is a measure on how the price of an option may vary in relation to the change in the price of a stock. Delta can vary between 1.0 and -1.0 (sometimes expressed as 100% or -100%).
In part 2, I showed an example (CBA, price $78.49 – May 2014): The option is out-of-money. The Strike price is 80.09 and therefore ...Continue Reading →