delta changes with change in underlying An ATM option has less delta than ITM option and more delta than OTM. So delta changes every minute as value changes. it your OTM PE becomes ITM it will have delta towards 1. If it becomes deep ITM then it will become like a future with delta nearly 1. 10 pts move will give 10 pts profit and loss as well.
1 dumb question bro
since im new to options,if i buy nifty PE whose delta is around .50 will it move 5pts if underlying moves 10pts .iam considering this scenario for the whole month is it possible? like we know theta curve for the month for otm option slope of the curve is downwards .is there anything for delta like this?
since im new to options,if i buy nifty PE whose delta is around .50 will it move 5pts if underlying moves 10pts .iam considering this scenario for the whole month is it possible? like we know theta curve for the month for otm option slope of the curve is downwards .is there anything for delta like this?