What Is Delta? (Simple Explanation)

Delta tells you how much an option’s price is expected to change if the stock moves $1.

Example: Delta = 0.50 → option moves about $0.50 for a $1 stock move.

Delta can also be used as a rough probability estimate (and I mean rough. Some days I think it's completely wrong):

• 0.30 delta ≈ ~30% chance of expiring in-the-money
• 0.70 delta ≈ ~70% chance

Quick rule: Low delta = cheaper, lower odds High delta = more expensive, higher odds

Simple definition: Delta = price sensitivity + probability estimate.

This is Not financial advice, and is for Educational purposes only. Options trading involves risk. You can lose your complete investment, and most traders do not make money.