Tag: underlying security moves

What Is The Delta In Stocks

The delta in stocks is a measure of how much the price of a security is likely to change in reaction to a change in the price of the security’s underlying asset. Delta is expressed as a fraction or percentage and can be positive or negative. A delta of zero indicates that the security’s price […]

How To Do Butterfly On Stocks

A butterfly on stocks is a bullish strategy that can be used when the trader expects a moderate increase in the price of the underlying security. The trader buys a lower strike call and sells two higher strike calls of the same expiration month. The strategy profits when the stock price rises and the higher […]