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Reply To: Question on how to read deltas in ToS

Home › Forums › Income Lab › Question on how to read deltas in ToS › Reply To: Question on how to read deltas in ToS

October 12, 2016 at 3:38 pm #7113
Steven Place
Keymaster

Ok to look at a single option delta, you can view it on the option chain or inside the analyze tab.

single-option-delta

Now to figure out when it hits 20 delta… I’ll show you the simple way first.

1. Find out the current 20 delta option:

delta

2. Subtract that strike from the strike of the short option you have. So if you have on the 2220 short call, then it would be 2220-2200 = 20 points

So basically if you have a 20 point move higher you probably need to look to adjust.

The more advanced way to do this is use the options analytics, and instead of looking at P/L Open, you look at Delta:

delta

And then you figure out at what price the delta will be 20.

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