Delta and More

Discussion in 'Options' started by tradingjournals, Jun 28, 2010.

  1. I thought to start this thread to revisit the topic of delta. Many incorrect things are written about delta, and a number of insights reside in people's mind but are not written down. Readers who have questions/comments/insignts related to delta can ask them here. If you came across good threads discussing delta, post links below. The issue of delta came up recently in thread on delta depreciation, and some questions about delta were debated. The link is: http://www.elitetrader.com/vb/showthread.php?s=&threadid=201844

    Some questions to start the discussion:

    1. What are the simplest ways to explain and interpret delta to a newbie?

    2. What are the most common misconceptions about delta?

    3. How do you use delta in practice to make money?

    4. Did you ever lose money because of a misunderstanding/too much understanding of delta?

    5. Anecdotes about delta.
     
  2. spindr0

    spindr0

    Delta Dawn, what's that flower you have on
    Could it be a faded rose from days gone by
    And did I hear you say he was a-meetin' you here today
    To take you to his mansion in the sky-eye

    She's forty-one and her daddy still calls 'er "baby"
    All the folks 'round Brownsville say she's crazy
    'Cause she walks downtown with her suitcase in her hand
    Lookin' for a mysterious dark-haired man

    In her younger days they called her Delta Dawn
    Prettiest woman you ever laid eyes on
    Then a man of low degree stood by her side
    Promised her he'd take her for his bride

    Delta Dawn, what's that flower you have on
    Could it be a faded rose from days gone by
    And did I hear you say he was a-meetin' you here today
    To take you to his mansion in the sky-eye

    Delta Dawn, what's that flower you have on
    Could it be a faded rose from days gone by
    And did I hear you say he was a-meetin' you here today
    To take you to his mansion in the sky-eye

    Delta Dawn, what's that flower you have on
    Could it be a faded rose from days gone by
    And did I hear you say he was a-meetin' you here today
    To take you to his mansion in the sky-eye

    Delta Dawn, what's that flower you have on
    Could it be a faded rose from days gone by
    And did I hear you say he was a-meetin' you here today
    To take you to his mansion in the sky-eye
     
  3. stoic

    stoic

    Thought I'd add my delta analysis to this thread.

    I deliberately left out any text from the document in order to let the reader draw their own conclusions and to promote comments.
     
  4. Good input, and interesting charts! I am interested in reading your conclusions.

    How did you get the real delta?
     
  5. stoic

    stoic

    Daily option price move vs. underlying.
     
  6. stoic

    stoic

    I was hoping to get more feedback on my delta analysis doc.