What Is the Relationship between Delta and an Option’s Intrinsic Value?

Delta measures the change in an option's price for a one-unit change in the underlying asset's price. For deep in-the-money (ITM) options, Delta approaches 1 (for calls) or -1 (for puts), meaning the option's price moves nearly dollar-for-dollar with the underlying.

In this state, the option's price is dominated by its intrinsic value, as any price change in the underlying is directly reflected in the intrinsic value.