Newbie question. . .

[cml2949]

how can you tell what option price is 50delta ?

Like yesterday's close for the puts in DJ or the S&P?

thanks for your advice!

CML2949

 

[MTE]

ATM options have a delta of 0.5 or 50 in stock terms.

 

[cml2949]

so if the S&P closed at 1280.27 yesterday than the 1280 puts would have a 50 delta?

 

[volatilitypimp]

Quote from cml2949:

so if the S&P closed at 1280.27 yesterday than the 1280 puts would have a 50 delta?

The puts are usually expressed in negative delta and the converse with calls.

 

[cml2949]

so if the S&P closed at 1280.27 yesterday than the 1280 puts would have a -50 delta?

which strike would be -50 delta if not?

Thanks

 

[cml2949]

Thanks ATM are close to 50 delta. . I wasn't reading some of the posts clearly...


Question has been answered! Thanks everyone..