What Does a Delta of 0.50 Indicate for a Call Option?
Delta measures the option's price sensitivity to a $1 change in the underlying asset's price. A Delta of 0.50 for a Call Option indicates that if the underlying asset's price increases by $1, the option's premium is expected to increase by approximately $0.50.
It also suggests the option has roughly a 50% probability of expiring in-the-money.
