After reading Subscriber Questions on stocks & options I have a question. Were can I find out how much an option will go up (or down) as compared to the stock price? (September 11, 2000)
This is called an option's delta. It is the measure of the option's movement in relation to the stock's movement. As with the previous question, we cover it extensively in the Q&A section in the members section on the website. Search for 'delta' by hitting control 'f'. The second hit is a direct link to this question, and we have three sites listed under that answer.
Briefly, a delta of 1 means a call will move dollar for dollar with the stock. Delta's of .75 or higher are good, but we cannot always get them on the stocks we want to buy.
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