The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about the Delta of an option contract. Delta’s an incredibly important Greek for option pricing and for options traders in general. In fact, if you’ve listened to any of our podcast or watched any of our videos anywhere online over the last 10 years, you’ve probably heard me say that word, Delta a number of times and that’s because we use Delta as a good guidepost and reference for building out strategies and using different trading techniques. Now, what many people don’t know or they falsely assume is the reality, is that the Greeks are part of an option’s price, but the Greeks are actually not part of option pricing at all. The Greeks are only used to estimate what an option price might do in the future reacting to a specific market environment change. All Delta is trying to do is Delta is trying to basically tell us what amount of money the option contract will move based on an expec