what is delta, IV, how delta affect premium, how it works into live market.

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Accepted Answer

Delta is the rate of change of an option's price with respect to the underlying asset's price. IV is a measure of the market's expectation of future volatility.

Delta measures the sensitivity of an option's price to changes in the price of the underlying asset. For example, a call option with a delta of 0.5 will increase by $0.50 if the underlying asset's price increases by $1.
IV (Implied Volatility) reflects the market's consensus on the future volatility of the underlying asset. Higher IV indicates higher expected price fluctuations.
Delta affects the premium of an option - the higher the delta, the higher the premium. This is because options with higher delta are more likely to end up in-the-money.
In live markets, traders use delta and IV to assess risk and make informed decisions. They adjust their strategies based on changes in these values to optimize their positions.

what is delta, IV, how delta affect premium, how it works into live market.

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