Delta and the consistent ( or lack thereof ) relation to............ - Options on Futures | futures io social day trading
futures io futures trading

Delta and the consistent ( or lack thereof ) relation to............
Updated: Views / Replies:680 / 4
Created: by mdsvtr Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

Delta and the consistent ( or lack thereof ) relation to............

  #1 (permalink)
Membership Temporarily Revoked
Futures Experience: Advanced
Platform: ThinkorSwim,FXCM, Ensign Software
Broker/Data: ThinkorSwim, FXCM
Favorite Futures: Futures, Forex, Options
mdsvtr's Avatar
Posts: 232 since Sep 2010
Thanks: 853 given, 28 received

Delta and the consistent ( or lack thereof ) relation to............

an Option over the length of its life. My question is this...... Say for instance, that I buy a JAN 2015 call on MSFT today ( Feb. 26, 2014 ) and that I buy a In the Money call that ( Today ) has a a Delta of 1.00 .
Will I continue to get the full 1.00 relation of the Delta to the stock for every dollar in price , that MSFT moves, up until the Expiration date of JAN 2015 ?
And also, if I buy the In the Money Call on MSFT todday, that has the Delta of 1.00 , will that relation between the 1.00 Delta and the stock remain constant, even if MSFT moves just .30 cents?
Say MSFT moves .30 cents, or .71 cents. So if it moves these various amounts in price, will that 1.00 delta relation remain ( I'd gain .30 cents, or ,71 cents on my Option correct ) ?

Sorry if my question is a bit confusing, it kinda confused me when I was trying to simplify my question myself lol

Thanks as always, I really appreciate it - Michael

Reply With Quote
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

  #3 (permalink)
Elite Member
London + UK
Futures Experience: Advanced
Platform: Proprietary Analytics
Broker/Data: Multiple broker + Multiple feed
Favorite Futures: Currently European and US equities
sands's Avatar
Posts: 434 since Dec 2013
Thanks: 229 given, 209 received

Hi, no delta will change due to a number of factors over the life of an option. If you research delta profile, you'll find more detailed information. But essentially it's the gradient of your option positions value graph and that graph will look different for a call/put or whether you're long/short. Essentially if delta is 0.5, a 1% move in the underlying will move the options value by 0.5. Etc.

For a simple call.

When you're OTM the delta will be 0
As you approach the ATM / strike price delta will start increasing
As your call passes the ATM it will approach 1

Hope that gets you started.

Good luck

Reply With Quote
  #4 (permalink)
Elite Member
New York, NY
Futures Experience: Advanced
Platform: TWS
Broker/Data: IB
Favorite Futures: ES
Bookworm's Avatar
Posts: 158 since Apr 2010
Thanks: 64 given, 144 received

An almost one year option with a Delta of 1.00 will have to be so deep in the money that you might be better off just buying the stock because you will be giving away more on the bid/ask spread of the option than the stock.

Reply With Quote
  #5 (permalink)
Elite Member
East Coast, Florida
Futures Experience: Intermediate
Platform: IRT/S5
Favorite Futures: ES
New Level's Avatar
Posts: 53 since Feb 2014
Thanks: 3,296 given, 77 received

Delta represents the markets assumptions for a strike to be ITM by expiration using the best mathematical models available. Delta's change is represented by gamma which is per dollar change in underlying, so for a delta .60 with a gamma of .15 if the underlying goes up one dollar the resulting delta is .75 . Gamma is also variable though so this is not exactly how it works because for each tick up in the underlying the gamma will also increase slightly, so the resulting delta for the dollar move may actually be .76 and the resulting gamma .17.

Reply With Quote


futures io > > > > Delta and the consistent ( or lack thereof ) relation to............

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

July Journal Challenge - $500 in Amazon Gift Cards!


AXESS Trader: Powerful Cloud Based Trading Platform w/GFF Brokers

Jul 17

TBA: FuturesTrader71 w/Morad Askar

Elite only

Similar Threads
Thread Thread Starter Forum Replies Last Post
My journey to a consistent income Disciple Elite Trading Journals 76 April 14th, 2014 12:41 PM
Do consistent systems exist? HJohnson Traders Hideout 24 November 3rd, 2013 03:13 PM
Price relation between spot forex and currency futures Righteous7 Traders Hideout 6 September 11th, 2013 06:36 PM
Anyone here a consistent winner with PROVEN results? johnedward Currency Futures 6 March 24th, 2013 03:28 PM
Decision Time For Europe: The Definitive Presentation On The Future (Or Lack Thereof) Quick Summary News and Current Events 0 November 13th, 2011 11:10 PM

All times are GMT -4. The time now is 03:03 PM. (this page content is cached, log in for real-time version)

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-07-15 in 0.10 seconds with 14 queries on phoenix