How Does the Moneyness of an Option Relate to Its Delta?

Delta is one of the option Greeks and measures the option price's sensitivity to a $1 change in the underlying asset's price. The moneyness of an option is directly related to its Delta.

Deep In-the-Money (ITM) options have a Delta close to 1 (Call) or -1 (Put), meaning they move almost dollar-for-dollar with the underlying. Out-of-the-Money (OTM) options have a Delta closer to 0, meaning they are less sensitive to price changes.