What Is the Relationship between an option’S’Delta’ and Its Effective Leverage?

Delta measures the sensitivity of the option's price to a $1 change in the underlying asset's price. The higher the Delta, the more the option price moves with the underlying asset.

Since leverage is a measure of the magnification of price movement, a higher Delta (closer to 1 for calls, -1 for puts) means higher effective leverage, as the option behaves more like the underlying asset.