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?
How does delta option work?
Could you explain to me in simple terms how the delta option functions? I've heard it's a key component in options trading, but I'm having trouble grasping the concept. Specifically, how does it relate to the underlying asset's price movements and how does it impact the option's value? Additionally, what strategies can traders employ to leverage the delta option to their advantage? I'm eager to learn more about this complex yet vital aspect of options trading.