What is the delta approach of options?
Could you please explain what the delta approach of options entails? I'm curious to understand how it works and what it signifies in the context of options trading. Is it a metric used to measure the sensitivity of an option's price to changes in the underlying asset's price? If so, how does it help traders make informed decisions? Additionally, are there any other factors that influence the delta of an option besides the underlying asset's price movement?