# Explain the Concept of 'Delta' for an Options Contract ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## Explain the Concept of ‘Delta’ for an Options Contract.

Delta is one of the “Greeks” and measures the sensitivity of an option’s price to a $1 change in the price of the underlying asset. It is expressed as a value between 0 and 1 for calls, and -1 and 0 for puts.

A Delta of 0.50 means the option price is expected to move $0.50 for every $1 move in the underlying asset.

- [Which of the Greeks Measures the Sensitivity of Option Price to Volatility?](https://learn.greeks.live/path/which-of-the-greeks-measures-the-sensitivity-of-option-price-to-volatility/)

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- [What Is the Significance of Gamma in Understanding the Change in an Option’s Delta?](https://learn.greeks.live/path/what-is-the-significance-of-gamma-in-understanding-the-change-in-an-options-delta/)

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- [What Is the Greek Letter That Measures the Sensitivity to Implied Volatility?](https://learn.greeks.live/path/what-is-the-greek-letter-that-measures-the-sensitivity-to-implied-volatility/)

- [Explain the Difference between Vega and Gamma in Options Risk Management](https://learn.greeks.live/path/explain-the-difference-between-vega-and-gamma-in-options-risk-management/)

- [Which Option ‘Greek’ Measures the Sensitivity to Volatility Changes?](https://learn.greeks.live/path/which-option-greek-measures-the-sensitivity-to-volatility-changes/)

## Glossar

### [Delta](https://learn.greeks.live/area/delta/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Parameter ⎊ In options theory, this measures the rate of change of an option's price relative to a one-unit change in the price of the underlying asset, often termed the first derivative of the option price with respect to the asset price.

## Discover More

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The change in an option's price for a $1 change in the underlying asset's price, and the probability of finishing in-the-money.

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### [How Does the Concept of "Skew" Affect the Interpretation of Delta as Probability?](https://learn.greeks.live/path/how-does-the-concept-of-skew-affect-the-interpretation-of-delta-as-probability/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
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Volatility skew violates model assumptions, making Delta a less accurate probability estimate, especially for deep OTM/ITM options.

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The fixed price at which the underlying asset of an option contract can be bought or sold upon exercise.

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