Delta (Finance)

In finance, delta measures how much an option's price is expected to change when the underlying asset's price moves by one unit. For example, a delta of 0.6 means that if the stock price increases by $1, the option's value will likely go up by about $0.60. Delta helps investors understand the relationship between the stock and the option, indicating potential gains or losses. It also provides insight into the option’s sensitivity and whether it behaves more like the underlying stock (delta close to 1 or -1) or less (delta near 0).