# Weekly Options – Delta

In options trading – and weekly options trading – ‘Delta’ can mean several different things.

Delta is one of the option greeks – along with theta, gamma, vega, and rho.

## Weekly Options – How To Measure

Perhaps one of the most widely used ways to describe delta – is that is measures the change in the value of an option for every one point move that the underlying makes.

For example – let’s take a look at the 100 weekly options call on stock XYZ which has a current value of 1.50 and which has a current delta of 21. What this ’21 delta’ tells us is that for every 1 dollar move that XYZ makes – the 100 call option will change in value by .21.

So, if XYZ moves up by one dollar – we can expect the 100 call option to be worth 1.71.

If XYZ move down by one dollar – we can expect the 100 call option to be worth 1.29.

### Weekly Options – Delta = Probability

Another way to look at delta is to view it in terms of probability. This is a method that many if not most option income traders use when setting up their monthly / weekly income trades.

When using option trades like iron condors, credit spreads, calendars, and the like, we many times are selling options that we want to expire worthless so we can bank the premium in our accounts.

Knowing how to calculate the probability – or likelihood – that a particular option will expire out of the money and worthless is a vital tool in helping us decide which particular options at which strike to sell.

That is another use of delta.

In the previous example – the 100 call option on XYZ had a delta of 21 – which can be translated into probability. In other words, that option with a 21 delta has a 21 percent chance of expiring in the money – which also means that there is a 79 percent chance that it will expire OUT of the money.

Using delta – or at least being aware of the delta of the options you are trading can significantly benefit our options trading – not only in choosing the correct options in setting up trades and selling premium – but also in know when and how to go about adjusting positions – whether we are trading monthly or weekly options.