# delta

change in call option price = NdXchange in stock price change in put option price = ND-1Xchange in stock price ok… so far understood… if deep in the money delta is close to 1 for call and close to -1 for put… but assuming. change in stock price is \$2 delta is 0.99 for call = 0.99X2=1.98 if change in stock price is -2 delta is -0.99 for put = (-0.99-1)*-2=3.98 so the put price decreases… is this correct? why does put price gain more compared to the change in call price?

ahmadmaghfur Wrote: ------------------------------------------------------- > change in call option price = NdXchange in stock > price > change in put option price = ND-1Xchange in stock > price > > ok… so far understood… > > if deep in the money delta is close to 1 for call > and close to -1 for put… > but assuming. > > change in stock price is \$2 > delta is 0.99 for call = 0.99X2=1.98 > if > change in stock price is -2 > delta is -0.99 for put = (-0.99-1)*-2=3.98 so the > put price decreases… > > is this correct? why does put price gain more > compared to the change in call price? any takers?

If the delta for the call is .99 because it is deep in the money, then the put is NOT deep in the money. Therefore, the delta on the put is close to zero, not -.99, and certainly not -2.

Delta Put = Delta Call -1 In this case Delta Put = .99-1 = -.01 try it with that…

mumu - you’re on a roll dude…