Option Delta Explained (The Basics, Probabilities & More)

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  • Опубліковано 16 гру 2024

КОМЕНТАРІ • 186

  • @projectfinance
    @projectfinance  Рік тому

    ✅ 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
    @dushyantkhinchi9304 4 роки тому +122

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

    • @projectfinance
      @projectfinance  4 роки тому +5

      Thank you!

    • @paulus_primus
      @paulus_primus 4 роки тому +3

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

    • @saintburnsy2468
      @saintburnsy2468 3 роки тому

      100% agree

  • @MrCurtis61
    @MrCurtis61 4 роки тому +14

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

  • @xanderseyes
    @xanderseyes 3 роки тому +20

    - 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.

  • @goodideaatthetime
    @goodideaatthetime 3 роки тому +12

    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!

  • @HefTrade
    @HefTrade 4 роки тому +18

    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
      @HefTrade 4 роки тому +1

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

  • @nasseem2747
    @nasseem2747 3 роки тому +1

    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.

  • @brianh7828
    @brianh7828 4 роки тому +9

    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!!

  • @justinkaten5316
    @justinkaten5316 4 роки тому +19

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

  • @AnjaliPathak5
    @AnjaliPathak5 3 місяці тому

    This is the best video on Options Delta. An otherwise complex topic explained so well! Many thanks, Chris.

  • @WaveWatchTrading007
    @WaveWatchTrading007 3 роки тому +2

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

  • @dontswin
    @dontswin 3 роки тому +4

    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!

  • @informationeagle
    @informationeagle 3 роки тому

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

  • @mabitsilegodi3102
    @mabitsilegodi3102 4 роки тому +8

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

    • @projectfinance
      @projectfinance  4 роки тому +2

      Glad you like them! Thank you for watching.

  • @David_BCFC-ENGLAND
    @David_BCFC-ENGLAND 9 місяців тому

    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

  • @samuimuscle
    @samuimuscle 4 роки тому

    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.

  • @PurpsFilms
    @PurpsFilms 2 роки тому +1

    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

  • @preferredcustomer8273
    @preferredcustomer8273 4 роки тому +8

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

    • @projectfinance
      @projectfinance  4 роки тому +2

      Of course! Glad I could help.

    • @shanellechambers6308
      @shanellechambers6308 3 роки тому

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

  • @craigsdaytrips5512
    @craigsdaytrips5512 4 роки тому +4

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

  • @snoopdogAZ
    @snoopdogAZ 3 роки тому +1

    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"

  • @dianapelaez77
    @dianapelaez77 2 роки тому +1

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

    • @projectfinance
      @projectfinance  2 роки тому

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

  • @helowolf05
    @helowolf05 4 роки тому

    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!

  • @Reza.thehealthcoach
    @Reza.thehealthcoach 3 роки тому

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

  • @Smurfin247
    @Smurfin247 3 роки тому +1

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

  • @prabhakarpotu6617
    @prabhakarpotu6617 3 роки тому

    Excellent presentation and very clear explanation. Excellent teacher

  • @mthobisimhlungu6252
    @mthobisimhlungu6252 3 роки тому

    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

  • @riteshagarwal2127
    @riteshagarwal2127 3 роки тому

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

  • @marianomedina07
    @marianomedina07 3 роки тому

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

  • @danielsurisetty
    @danielsurisetty 3 роки тому

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

  • @davidpearce4838
    @davidpearce4838 3 роки тому +1

    This has been excellent for my learning. Thanks Chris.

  • @adage3256
    @adage3256 3 роки тому

    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.

  • @Joygre1
    @Joygre1 4 роки тому

    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!

  • @ehleesbabay
    @ehleesbabay 4 роки тому +3

    Super helpful, especially the examples. Thank you!

  • @tamirahardnett7134
    @tamirahardnett7134 2 місяці тому

    Great video! Straight to the point!

  • @rooooony
    @rooooony 4 роки тому +1

    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!

  • @tushkyd6348
    @tushkyd6348 Рік тому

    Hey there i just wanted to know do you guys teach from basic of stock mrkt to delta options greek course for US and Canadian mrkt if yes pls update

  • @hws2152
    @hws2152 2 роки тому

    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

  • @brunodrumsnyc
    @brunodrumsnyc 3 роки тому +1

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

  • @GuanMin
    @GuanMin 3 роки тому

    bless this channel, explanations are great for understanding !

  • @sivucit
    @sivucit 4 роки тому +2

    Hi,
    I assume Delta have a play on extrinsic value but not on intrinsic value. Pls advise.

  • @schries
    @schries 4 роки тому

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

  • @elynzhou7694
    @elynzhou7694 3 роки тому

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

  • @JK-vb9ps
    @JK-vb9ps 4 роки тому

    clear and concise explanation. well done chris

  • @lilwa2
    @lilwa2 2 роки тому +1

    This video is golden ! Thanks a lot Sir !

  • @khalidjaii2
    @khalidjaii2 Рік тому

    Do you have a video explaining an example such as 14 Delta strangle?.
    Thanks

  • @shikhashersinghyadav475
    @shikhashersinghyadav475 3 роки тому

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

  • @saintburnsy2468
    @saintburnsy2468 3 роки тому

    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 👍🏻

  • @yahyajwad
    @yahyajwad 3 роки тому

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

  • @AM-yd5dt
    @AM-yd5dt 3 роки тому

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

  • @supa007germany
    @supa007germany 3 роки тому

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

  • @creditpro1280
    @creditpro1280 3 роки тому

    Thanks! I really learn so much from your vids.

  • @chairman6652
    @chairman6652 3 роки тому

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

  • @prajay83
    @prajay83 3 роки тому

    Wonderful explanation..understood delta clearly

  • @olutoyin7602
    @olutoyin7602 4 роки тому +2

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

  • @charlierobles316
    @charlierobles316 4 роки тому +1

    Easy to understand but gotta watch over

  • @DJSouthFlorida
    @DJSouthFlorida 3 роки тому

    During the option delta vs stock price section. Is the 0.00 the break even point?
    Thanks

  • @danbelchar9373
    @danbelchar9373 2 роки тому

    Great explanation, i watched twice

  • @itz_abi1261
    @itz_abi1261 4 роки тому

    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 ??

  • @stanleysylvain4793
    @stanleysylvain4793 3 роки тому +1

    Why is understanding delta important? I know it is, but I’m trying to understand why I have to either buy or not buy an option. When I look at the delta numbers, what about them that can help my decisions. Thanks.

  • @jerrynix5206
    @jerrynix5206 4 роки тому +1

    Happy New Year Chris!

  • @yc1228
    @yc1228 3 роки тому

    Great job explaining. Thank you for your videos.

  • @Reeseybaby
    @Reeseybaby Рік тому

    Thanks Chris. But I was hoping you would've explained the options that have a delta after thr first number. Like delta 0.032 on a call option. I'm assuming it's the same way but by how much more cents. Lol

  • @KARAB1NAS
    @KARAB1NAS 4 роки тому

    11:09 why does Delta relate to probability the option to expire in the money? Is there any proof/reference for that? Thanks

    • @jamesmarsh4047
      @jamesmarsh4047 3 роки тому +1

      Delta does not represent the probability because option pricing takes place in a risk-neutral world and ignores drift.

  • @michaelmain8957
    @michaelmain8957 3 роки тому

    Deff the best on you tube almost everyone trying to teach or explain any of this are mostly educated idiots with realy no clue but there realy good at plagiarizing thanks cris keep it up

  • @supersaiyanmuslim7569
    @supersaiyanmuslim7569 3 роки тому

    Thanks again Chris! Love your videos man!

  • @Tramadoon
    @Tramadoon 3 роки тому +1

    Great video buddy. My only comment would be if you could remove background music from you videos. I know the volume is low, but still... they can be distracting as one tries to concentrate. Thanks again!

  • @victormiranda9748
    @victormiranda9748 3 роки тому

    You're a great teacher

  • @jcinewilliams8819
    @jcinewilliams8819 3 роки тому

    This was helpful but I m still a lil unsure about deltas. If anyone can answer please do.
    I currently am selling a Put option way above the stock price. It has a -0.4851 Deltaso does that mean im NOT a fair position to gain some profit off this option? If I'm understanding this video this delta is to close to zero which in essence eould benefit the buyer

  • @banksj54
    @banksj54 3 роки тому

    I was told the deltas are to be used like percentages. So on a put if it’s -.09 it’s a 9% chance it will hit that strike price?

  • @troyflowers8605
    @troyflowers8605 3 роки тому

    Great video! I understand delta a bit better

  • @flyboylipad75
    @flyboylipad75 4 роки тому

    Great job Chris! Learning heaps on options. Thanks

  • @wiseman4160
    @wiseman4160 4 роки тому

    I heard the lowest delta you should do for a calls out of the money is 25 and 30 to 40 is a really good Delta. If i understand video correctly 25 means 0.25. But i never heard what is a good Delta is for puts out of the money. Because the idea with out of the money is to make lots of money when right. But beginners i hear buy very low Delta because it's so cheap so the delta has to work even harder to reach your strike price. Your thoughts on these comment?

  • @rohitindurkar
    @rohitindurkar 4 роки тому +2

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

  • @livefire5623
    @livefire5623 4 роки тому

    For a call with a $1 price increase, is the increase based upon the call+contract cost? For instance, a call with with a $133 strike price and a contract cost of 0.23 would be a Break Even Price at 133.23. Assuming a delta of 0.30, in order to make the delta per every $1 dollar of change you mentioned, does the price of the stock need to reach $134 or would it need to reach $134.23?

  • @enricosaccheggiani3192
    @enricosaccheggiani3192 2 роки тому +1

    well explained . good job thanks a lot

  • @DariushMaleki
    @DariushMaleki 4 роки тому

    Thank you. Great video for Option Delta explanation.

  • @cppoly
    @cppoly 4 роки тому

    Chris, can you help with this. If a call is ITM, how come delta isn't 1? For instance, with a 100 strike call, and the stock price at 105, we know the call has at least $5 of intrinsic value. So if the stock moves $1 higher to 106, then wouldn't the new call price be worth at least $6 representing the intrinsic value and therefore delta 1 since the value moved $1 higher?

  • @nathaniel2153
    @nathaniel2153 3 роки тому

    I have a question, Does that means the best options to buy/sell is near the strike price?

  • @mtsguides
    @mtsguides 4 роки тому

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

  • @Epmenard
    @Epmenard 4 роки тому

    Is there a way to profit from a skewed delta rating that's out of whack with its theoretical value? For example take the Jan 21 puts for Xerox (XRX) that have a delta of -1 for the 27, 37 and 40 puts which makes sense being deep ITM, however and strangely, the 30, 32 and 35 puts hover around -0.6.

  • @carlosnoname1427
    @carlosnoname1427 3 роки тому

    Amazing explanation !!!! thank you !

  • @AutoFOCUSED.
    @AutoFOCUSED. 3 роки тому

    Do they credit you only on the dollar or, for example, would you get $0.375 for $0.50 increase on the share?

  • @tonyc2227
    @tonyc2227 4 роки тому

    Isn't the delta the same as probability of ITM? If so then why the broker such as tastyworks have columns such probably of ITM and probability of touch since you can derive prob of ITM from delta and prob of touch from prob of ITM?

  • @chris-pw6jt
    @chris-pw6jt 4 роки тому +2

    Hi, i recently got set up with an Ally account. i know you push Tastyworks, id like to hear your thoughts on Ally vs tastyworks.
    great stuff here, man!

    • @projectfinance
      @projectfinance  4 роки тому +2

      Hey Chris!
      I don't know much about Ally but I just looked at their pricing and they don't charge any ticket fees for options trades and they also charge $0.50/contract, which is very good. I'd say the biggest downside with Ally is probably their trading platform. tastyworks/thinkorswim/InteractiveBrokers are probably the best platforms for options trading.

    • @chris-pw6jt
      @chris-pw6jt 4 роки тому +1

      @@projectfinance i just did my first trade with them today (earned $300 on my first trade, 15% ROI!!), and you're right, their platform is a pain. TW looks pretty simple by comparison, I'll have to switch over once i can convince myself to lose 3 days of trading while my money is in transit.

    • @michaelpeck5547
      @michaelpeck5547 4 роки тому +2

      @@chris-pw6jt I cancelled my Ally acct. My issues with them was that money transfers are slow and their platform has performance issues during high volume trade days. If you like options, TW is fantastic. I killed my Ally acct but I still have Robinhood, TastyWorks, and ThinkorSwim (TD Ameritrade). TD kills them all, especially in charting but TW is the best for options IMO.

  • @SusieO
    @SusieO 4 роки тому

    Excellent video. Thanks very much.

  • @Smallqueendom
    @Smallqueendom 3 роки тому

    I had a 💡 moment. Thank you Chris!

  • @savlikanekar
    @savlikanekar 3 роки тому

    Nicely explained. Thanks

  • @lolo-cz3yk
    @lolo-cz3yk 3 роки тому

    Sir when u say dollar one will it remain same for my currency . Like I am an Indian and deals with Indian rupees so change of every rs1 delta can be defined sir ?

  • @AliRaza-yx7ci
    @AliRaza-yx7ci Рік тому

    08:27 Where exactly is the stock price here?
    I can only see a graph of Delta vs strike price of call and put? 😂
    U keep comparing it with stock price which I don’t understand.
    So the stock price is ~$208 here.. right?

  • @MegaRisenshine
    @MegaRisenshine 3 роки тому

    Ty sir understand now at least on delta

  • @fiskenburg007
    @fiskenburg007 4 роки тому

    But what determines the starting Delta and Gamma stats?

  • @alexaxana7597
    @alexaxana7597 4 роки тому

    Great explanation! Thank you

  • @livingbreed
    @livingbreed 4 роки тому

    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! 💰🚀

  • @velissalewis5321
    @velissalewis5321 5 місяців тому +1

    Thanks!

  • @jamilakalilj
    @jamilakalilj 3 роки тому

    This is awesome man. Thank you!

  • @riskedcapital
    @riskedcapital 2 роки тому

    Great vid Chris!

  • @brendanquinn6894
    @brendanquinn6894 2 роки тому +1

    Thanks Chris.

  • @robertkorpas1465
    @robertkorpas1465 2 роки тому +1

    Opened an account on TW and funded with required amount. How do I get the free course?

  • @Sarasdad91
    @Sarasdad91 3 роки тому

    Another great video, Chris, thank you...

  • @razdingz
    @razdingz 3 роки тому

    Awesome teacher !