 This topic has 13 replies, 10 voices, and was last updated 2 years, 4 months ago by Nitin Bhatia.

AuthorPosts


May 11, 2019 at 10:14 PM #105744Nitin BhatiaKeymaster
Option Greek Delta having co relation with probability of hitting a strike price

May 11, 2019 at 10:22 PM #105896Nitin BhatiaKeymaster
I think no

May 11, 2019 at 10:38 PM #106110Nitin BhatiaKeymaster
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 #106112Nitin BhatiaKeymaster
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 #106114Nitin BhatiaKeymaster
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 #106485Nitin BhatiaKeymaster
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 #107581Nitin BhatiaKeymaster
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 #107979Nitin BhatiaKeymaster
DELTA ,GAMMA ,IN SAB KI VALUE KAHA DEKHNA HAI.

May 12, 2019 at 10:32 AM #107981Nitin BhatiaKeymaster
To
saraldeyDelta is another way of expressing the probability of an option expiring
inthemoney. 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 outofthemoney 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 riskfree 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 professionalstyle traders
who have the very best technology solutions and a lot of experience.
Thank You 
May 12, 2019 at 12:03 PM #108333Nitin BhatiaKeymaster
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 #108357Nitin BhatiaKeymaster
Correction,Extremely Sorry for typo error, Please read 6 months instead 5 and 70% success,

May 12, 2019 at 9:26 PM #109340Nitin BhatiaKeymaster
Nitinji, Kindly share your views/ I would be grateful.

May 16, 2019 at 9:27 PM #113182Nitin BhatiaKeymaster
I agree with SantanuMaji1994


May 13, 2019 at 11:24 PM #109903Nitin BhatiaKeymaster
Thanks SANTANUMAJI1994 your participation is really helpful…


AuthorPosts
 The topic ‘ Option Greek Delta & probability of a strike price’ is closed to new replies.