Options Greeks
What is Delta and how does it quantify the expected rate of change per $1 move in the stock?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Delta measures the expected change in an option's price for a $1 move in the underlying stock, ranging from 0 to 1.0 for calls and 0 to -1.0 for puts.
How it works
Delta also indicates approximate directional exposure, so a position with a delta of 0.50 behaves similarly to owning roughly 50 shares of the underlying stock per contract.
An example
An XYZ call with a 0.40 delta is expected to gain about $0.40 in premium if the stock rises $1, all other factors held constant.
Risk & limitations
Delta changes continuously as the stock price and time to expiration shift, so it is a dynamic estimate, not a fixed guarantee of price movement.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.