Option Delta Explained (The Basics, Probabilities & More)

Рет қаралды 141,425

4 жыл бұрын

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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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Пікірлер: 184

@projectfinance 11 ай бұрын

✅ 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 4 жыл бұрын

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

@projectfinance 4 жыл бұрын

Thank you!

@paulus_primus 3 жыл бұрын

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

@saintburnsy2468 2 жыл бұрын

100% agree

@MrCurtis61 3 жыл бұрын

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

@justinkaten5316 4 жыл бұрын

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

@WaveWatchTrading007 3 жыл бұрын

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

@xanderseyes 3 жыл бұрын

- 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.

@informationeagle 2 жыл бұрын

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

@goodideaatthetime 3 жыл бұрын

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!

@PurpsFilms 2 жыл бұрын

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

@mthobisimhlungu6252 3 жыл бұрын

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

@craigsdaytrips5512 4 жыл бұрын

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

@brianh7828 4 жыл бұрын

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 4 жыл бұрын

Thank you for watching!

@mabitsilegodi3102 4 жыл бұрын

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

@projectfinance 4 жыл бұрын

Glad you like them! Thank you for watching.

@dontswin 3 жыл бұрын

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!

@HefTrade 4 жыл бұрын

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 4 жыл бұрын

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

@David_BCFC-ENGLAND 4 ай бұрын

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

@ehleesbabay 3 жыл бұрын

Super helpful, especially the examples. Thank you!

@schries 3 жыл бұрын

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

@marianomedina07 3 жыл бұрын

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

@brunodrumsnyc 3 жыл бұрын

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

@Joygre1 3 жыл бұрын

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!

@samuimuscle 3 жыл бұрын

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.

@saintburnsy2468 2 жыл бұрын

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 👍🏻

@loreall.2461 3 жыл бұрын

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

@Smurfin247 3 жыл бұрын

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

@prabhakarpotu6617 3 жыл бұрын

Excellent presentation and very clear explanation. Excellent teacher

@helowolf05 3 жыл бұрын

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!

@flyboylipad75 3 жыл бұрын

Great job Chris! Learning heaps on options. Thanks

@preferredcustomer8273 4 жыл бұрын

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

@projectfinance 4 жыл бұрын

Of course! Glad I could help.

@shanellechambers6308 3 жыл бұрын

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

@JK-vb9ps 3 жыл бұрын

clear and concise explanation. well done chris

@Reza.thehealthcoach 3 жыл бұрын

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

@danielsurisetty 3 жыл бұрын

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

@AM-yd5dt 3 жыл бұрын

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

@creditpro1280 3 жыл бұрын

Thanks! I really learn so much from your vids.

@elynzhou7694 3 жыл бұрын

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

@GuanMin 2 жыл бұрын

bless this channel, explanations are great for understanding !

@shikhashersinghyadav475 3 жыл бұрын

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

@rohitindurkar 4 жыл бұрын

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

@jerrynix5206 4 жыл бұрын

Happy New Year Chris!

@supa007germany 3 жыл бұрын

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

@adage3256 3 жыл бұрын

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 5 ай бұрын

U been profitable?

@DariushMaleki 4 жыл бұрын

Thank you. Great video for Option Delta explanation.

@dianapelaez5894 Жыл бұрын

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

@projectfinance Жыл бұрын

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

@yc1228 3 жыл бұрын

Great job explaining. Thank you for your videos.

@davidpearce4838 2 жыл бұрын

This has been excellent for my learning. Thanks Chris.

@projectfinance 2 жыл бұрын

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

@prajay83 3 жыл бұрын

Wonderful explanation..understood delta clearly

@yahyajwad 2 жыл бұрын

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

@snoopdogAZ 3 жыл бұрын

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"

@alexaxana7597 3 жыл бұрын

Great explanation! Thank you

@supersaiyanmuslim7569 2 жыл бұрын

Thanks again Chris! Love your videos man!

@carlosnoname1427 3 жыл бұрын

Amazing explanation !!!! thank you !

@savlikanekar 2 жыл бұрын

Nicely explained. Thanks

@chairman6652 3 жыл бұрын

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

@victormiranda9748 3 жыл бұрын

You're a great teacher

@SusieO 3 жыл бұрын

Excellent video. Thanks very much.

@riteshagarwal2127 2 жыл бұрын

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

@enricosaccheggiani3192 2 жыл бұрын

well explained . good job thanks a lot

@KatieLou_johnson 3 жыл бұрын

Really appreciate this video!

@lilwa2 2 жыл бұрын

This video is golden ! Thanks a lot Sir !

@projectfinance 2 жыл бұрын

Thanks for the comment!

@danbelchar9373 2 жыл бұрын

Great explanation, i watched twice

@gregoryphillips4459 3 жыл бұрын

Thank you. Good information.

@paridhirastogi6708 2 жыл бұрын

Great work, thanks.

@Smallqueendom 3 жыл бұрын

I had a 💡 moment. Thank you Chris!

@razdingz 3 жыл бұрын

Awesome teacher !

@riskedcapital 2 жыл бұрын

Great vid Chris!

@troyflowers8605 3 жыл бұрын

Great video! I understand delta a bit better

@charlierobles316 4 жыл бұрын

Easy to understand but gotta watch over

@jamilakalilj 3 жыл бұрын

This is awesome man. Thank you!

@MegaRisenshine 3 жыл бұрын

Ty sir understand now at least on delta

@kumaralok1803 3 жыл бұрын

very informative. good job

@velissalewis5321 Күн бұрын

Thanks!

@Sarasdad91 3 жыл бұрын

Another great video, Chris, thank you...

@nasseem2747 3 жыл бұрын

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.

@PalwankarRavi 2 жыл бұрын

Excellent. Thx a lot.

@projectfinance 2 жыл бұрын

You're welcome! Thanks for watching.

@tf3908 4 жыл бұрын

OMG! I GET IT! THANK YOU THANK YOU!

@bigspank2085 2 жыл бұрын

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 2 жыл бұрын

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

@sergheistiroi9333 3 жыл бұрын

Thanks for explanation

@dantecapozzola1353 3 жыл бұрын

Really helpful.

@livingbreed 3 жыл бұрын

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! 💰🚀

@brendanquinn6894 2 жыл бұрын

Thanks Chris.

@chewkeat 2 жыл бұрын

Thank you!

@rishipatel7998 3 жыл бұрын

SIR YOU ARE AMAZING

@kk3528 2 жыл бұрын

Very good video 👌

@mtsguides 4 жыл бұрын

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

@Polettie 3 жыл бұрын

Great video ... Thanks ..

@olutoyin7602 4 жыл бұрын

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

@projectfinance 4 жыл бұрын

Glad you like them!

@Taker.Of.Life.556 3 жыл бұрын

Thank you

@nathaniel2153 3 жыл бұрын

Thanks SIR

@mohamedshalaby6280 3 жыл бұрын

Well done!

@dineshg8814 4 жыл бұрын

Thank u so much.

@luisfranco7193 2 жыл бұрын

Great video 👍👍👍

@rooooony 3 жыл бұрын

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!

@yogeshlad133 3 жыл бұрын

Nice helpful video

@mohamedelwakdy7048 3 жыл бұрын

Thank you sire gr8 job

@hws2152 2 жыл бұрын

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

@ricklavie7315 3 жыл бұрын

Excellent 👍

@mosestighil1179 4 жыл бұрын

Very cool, like it

@projectfinance 4 жыл бұрын

Thank you! Cheers!

@itz_abi1261 3 жыл бұрын

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 ??