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What Is the Relationship between an Option’s Delta and Its OTM Status?

An OTM option has a Delta close to zero, meaning its price is less sensitive to changes in the underlying asset's price.
Greeks.Live04.11.25

What Is the Relationship between an Option’s Delta and Its OTM Status?

Delta measures the sensitivity of the option's price to a $1 change in the underlying asset's price. For an OTM option, the Delta is close to zero.

The further OTM, the closer Delta is to zero, indicating the option price is less sensitive to small asset price movements. An At-The-Money (ATM) option has a Delta near 0.5.

How Does Delta Differ between an ITM and an OTM Call Option?
What Is the Relationship between an Option’s Strike Price and Its Delta?
What Is the Relationship between Intrinsic Value and “In the Money” Status?
What Is the Relationship between an option’S’Delta’ and Its Effective Leverage?

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