Secret Swing Trading Strategy

Forums Ask Me Anything Option Greek Delta & probability of a strike price

Viewing 12 reply threads
  • Author
    Posts
    • #105744
      Nitin Bhatia
      Keymaster

        Option Greek Delta having co relation with probability of hitting a strike price

      • #105896
        Nitin Bhatia
        Keymaster

          I think no

        • #106110
          Nitin Bhatia
          Keymaster

            I seek advice please.I am looking for some input which will help in option trading for successful trade.

          • #106112
            Nitin Bhatia
            Keymaster

              Yes there is a correlation between delta and probability of hitting strike price.

              Delta greater than 0.5 than probability of hitting that strike price is high.
              The greater the delta is , the higher the probability of hitting strike price is.

            • #106114
              Nitin Bhatia
              Keymaster

                No, Delta only shows change in Premium with change in stock/Index current price/point by 1 rs.

              • #106485
                Nitin Bhatia
                Keymaster

                  https://www.youtube.com/watch?v=KuVk36shpX0&list=PLA_3IDDrNPSFrh5VccrmODbfc7gq9DJmt&index=3&t=1s
                  Would suggest you to go through above “YT Video” by Nitin Sir,there is full palylist for OPTION Greeks by Nitin Sir…

                • #107581
                  Nitin Bhatia
                  Keymaster

                    Delta shows that if index or stock price move up or down then how much premium will increase of that strike price for eg.
                    If I bought 11300 CE and delta of that strike price is 0.5 that means if nifty move above 1 rupee then my premium will be increase by 0.5 paise
                    Correct me if I am wrong Nitin sir

                  • #107979
                    Nitin Bhatia
                    Keymaster

                      DELTA ,GAMMA ,IN SAB KI VALUE KAHA DEKHNA HAI.

                    • #107981
                      Nitin Bhatia
                      Keymaster

                        To
                        saraldey

                        Delta is another way of expressing the probability of an option expiring
                        in-the-money. This makes sense because an ATM call option has a Delta of
                        0.5; i.e., 50%, meaning a 50% chance of expiring ITM. A deep ITM call will
                        have a Delta of near 1, or 100%, meaning a near 100% chance of expiration
                        ITM. A very out-of-the-money call option will have a Delta of close to zero,
                        meaning a near zero chance of expiring ITM.
                        Delta can be interpreted both in terms of the speed of the position and
                        the probability of an option expiring ITM. Some advanced traders like to
                        trade with the sum of their portfolio Delta at zero, otherwise known as Delta-
                        Neutral trading. This is by no means a risk-free method of trading, but it is a
                        style that enables profits to be taken regardless of the direction of market
                        movement. However, this is only really suited to professional-style traders
                        who have the very best technology solutions and a lot of experience.
                        Thank You

                      • #108333
                        Nitin Bhatia
                        Keymaster

                          Hi Dear all,wonderful input. I have developed a theme on the subject and doing back testing before sharing.Last 5 months data being used.So far I got 0% success. I shall try to integrate all the logical inputs.

                        • #108357
                          Nitin Bhatia
                          Keymaster

                            Correction,Extremely Sorry for typo error, Please read 6 months instead 5 and 70% success,

                          • #109340
                            Nitin Bhatia
                            Keymaster

                              Nitinji, Kindly share your views/ I would be grateful.

                            • #109903
                              Nitin Bhatia
                              Keymaster

                                Thanks SANTANUMAJI1994 your participation is really helpful…

                            Viewing 12 reply threads
                            • The topic ‘Option Greek Delta & probability of a strike price’ is closed to new replies.
                            Scroll to Top