Thorsten Wegener On the Simplest Way to Understand Option Markets
Macro Hive Conversations With Bilal Hafeez
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What Is the Delta of an Option?
A delta of 50 zero point five tells you it's a 50 % probability that after one year, you will be above that level. The strike is the price at which your option gets into the money. So if you buy an option which has a 50 deltas 50 cent chance it will be at that price or in the money in a year's time, and then the price of the market simply starts to go up, then the delta starts to increase on your investment. Do you do anything caseno as somebody who's managing the position? Yes, but i usually do, i ride options on top of it.
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