Time to Expiration & Delta

[nerdzkilla]

The chart attached illustrates the behaviour of the delta of options at various strikes expiring in 3 months, 6 months and 9 months when the stock is currently trading at $50.

The above is quote from the author of the chart. They did not mention if this chart is for call options or put options. Is this really just for call options or am i just lost lol

For put options we looking at the mirror of this chart?

 

[wayneL]

The above is quote from the author of the chart. They did not mention if this chart is for call options or put options. Is this really just for call options or am i just lost lol

For put options we looking at the mirror of this chart?

The chart is valid for a short put.

<edit> Hang on, I'm not sure what he is trying to show.

If he is showing the delta of various strikes with the stock at 50 then it is correct for a long call.

Clarification needed.

 

[nerdzkilla]

The chart is valid for a short put.

<edit> Hang on, I'm not sure what he is trying to show.

If he is showing the delta of various strikes with the stock at 50 then it is correct for a long call.

Clarification needed.

Hey Wayne,

Yes it is the delta of various strikes with the stock at 50. For the put options we just take a mirror snapshot of it?

Here is the link to the chart

http://www.theoptionsguide.com/delta.aspx

 

[village idiot]

nerdz

put chart would be similar to a mirror image but i think it would be a bit different due to the effect of interest on the longer term options

for your homework , get an option calculator and an excel spreadsheet, recreate the call chart and construct the corresponding put chart (using the deltas from the option calculator). Then you can tell us.

 

[wayneL]

http://www.theoptionsguide.com/delta.aspx

In the past I've noticed the odd mistake in that site so be careful with it.