How Does Delta Measure an Option’s Price Sensitivity?

Delta measures the theoretical change in an option's price for every one-unit change in the underlying asset's price. For example, a Delta of 0.50 means the option's price should move by $0.50 if the underlying cryptocurrency moves by $1.00.

It is a primary measure of directional risk. Call options have a positive Delta (0 to 1), and put options have a negative Delta (-1 to 0).

It helps traders understand the probability of an option expiring in-the-money.