What are the ?Greeks??
Options are dynamic animals governed by a set of theoretical variables known as ?Greeks.? Together they assume the dynamics of the sensitivity of the option with regards to a one point move in the underlying.
This includes?delta,?gamma,?vega?and?theta.
What is a Delta?
?The term in relation to options is the rate of change of the options price in relation to a one point move in the underlying. If the underlying moves up or down, the delta is the amount the options price will change in direct relation to that one point move in the underlying.
The delta of an option is used to identify the equivalency of the number of options to the actual underlying shares. As time passes, the deltas rise or fall to the option in relation of the underlying, depending on the option in question, as expiration nears.
Here’s some additional information.?
Options Playbook Radio 6: Meet the Greeks Volume 1: Delta?
Delta is the key to options profitability?