May 11, 2019 at 10:14 PM #105744
Option Greek Delta having co relation with probability of hitting a strike price
May 11, 2019 at 10:22 PM #105896Krishna123Participant
I think no
May 11, 2019 at 10:38 PM #106110
I seek advice please.I am looking for some input which will help in option trading for successful trade.
May 11, 2019 at 10:49 PM #106112shekhat.hiteshParticipant
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.
May 11, 2019 at 10:51 PM #106114HirenParticipant
No, Delta only shows change in Premium with change in stock/Index current price/point by 1 rs.
May 12, 2019 at 12:51 AM #106485rathoreriteshParticipant
Would suggest you to go through above “YT Video” by Nitin Sir,there is full palylist for OPTION Greeks by Nitin Sir…
May 12, 2019 at 4:43 AM #107581rafikParticipant
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
May 12, 2019 at 10:28 AM #107979NISbK002Participant
DELTA ,GAMMA ,IN SAB KI VALUE KAHA DEKHNA HAI.
May 12, 2019 at 10:32 AM #107981SANTANUMAJI1994Participant
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.
May 12, 2019 at 12:03 PM #108333
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.
May 12, 2019 at 12:06 PM #108357
Correction,Extremely Sorry for typo error, Please read 6 months instead 5 and 70% success,
May 12, 2019 at 9:26 PM #109340
Nitinji, Kindly share your views/ I would be grateful.
May 13, 2019 at 11:24 PM #109903doharecParticipant
Thanks SANTANUMAJI1994 your participation is really helpful…
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