explain delta in stock trading with example ?

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explain delta in stock trading with example ?

Delta is a measure of the sensitivity of an option's price to a change in the price of the underlying asset. It is a ratio that compares the change in the price of the option to the change in the price of the underlying asset. For example, if a call option has a delta of 0.50, this means that if the underlying stock increases in price by $1, the call option's price will increase by $0.50. Conversely, if the underlying stock decreases in price by $1, the call option's price will decrease by $0.50. Delta can also be used to measure the sensitivity of a portfolio of options to changes in the underlying assets prices.


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