How to Use Delta In Options Trading Like a Pro

How to Use Delta In Options Trading Like a Pro
To get the transcript and MP3, go to: www.rockwelltrading.com/coffe...
Intro: 0:00
What Is Delta?: 0:52
Delta and The "Probability ITM" Feature: 3:45
Applying Delta To Decision Making: 7:45
Example: How To Use Delta for The PowerX Strategy & The Wheel Strategy: 8:45
Delta is one of the most important concepts in options trading. But it can be difficult to understand at first, and that's where this video comes in!
I'm going to show you how delta works, what it means for your trades, and how to use it like a pro.
In this video:
- What Is Delta?
- Understanding Delta
- Delta and the "Probability ITM" feature
- Applying delta to decision making
- Example on how to use delta for PowerX Strategy and The Wheel Strategy
When you understand delta in options trading, you will definitely have an edge.
Recommended Links and Videos:
The Ultimate Guide To The PowerX Strategy: • The Ultimate Guide To ...
The Wheel Options Strategy - A Complete Guide: • The Wheel Options Trad...
My Trading Routine: go.rockwelltrading.com/my-tra...
#OptionsTrading #StockMarket #TheWheelStrategy
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[@rockwelltradingservices]

I hope you found this video helpful. In the meantime, check out some of these other videos, and if you have any questions let me know in the comments.
Recommended Links and Videos:
The Ultimate Guide To The PowerX Strategy: ruclips.net/video/6C_ac36iXMw/видео.html
The Wheel Options Strategy - A Complete Guide: ruclips.net/video/JmXwyTYz1hE/видео.html
My Trading Routine: go.rockwelltrading.com/my-trading-routine

[@davidmalka4396]

Markus thanks a lot, the fact that you are German helps a lot because most Americans speaks too fast and it's hard to catch them. Your explanation of Delta was the clearest I saw while trying to learn what is Delta at all.

[@rockwelltradingservices]

I am glad that this helps! ;)

[@Myscentsei]

U the best at breaking it down. 💯

[@rockwelltradingservices]

Thank you! I am glad that you liked it. ;)

[@CR-fy9uw]

Great production as always...thank you.

[@rockwelltradingservices]

😊 You are welcome! I am glad that this helps!

[@mihirshah1642]

Thank you, Markus! Both delta and its application were explained in a very simple and yet helpful way.

[@rockwelltradingservices]

I am glad that this helps! ;)

[@Sifatullahsolo]

great style of explanation

[@rockwelltradingservices]

Thank you! 😊

[@WesHodges757]

Very informative, and I like the styles of your videos. Keep up the good work!

[@rockwelltradingservices]

Thank you! 😎

[@MrMockingbird1313]

Hey Markus This is video is very helpful. You explained something 10 other video content makers never explained very well. Please consider a short follow up video explaining Delta with SPY and SPX. Thanks for a good job.

[@rockwelltradingservices]

Thank you for your feedback and for watching!

[@gloriadefelix]

Thank you so much. That was very clearly explained.

[@rockwelltradingservices]

Awesome! I am glad that this helps.

[@ykenter1]

I use delta as one of the main variables in trading the wheel strategy. It would be nice if the software could sort by delta.

[@charlieboy2688]

Love this explanation … thank you 🙏🏽

[@rockwelltradingservices]

Hi @charlieboy2688, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

[@cmsowp]

Thank you! Miss you at Coffee with Markus. Although Mark is awesome.👍

[@rockwelltradingservices]

Thank you! I will be back on February 28! 😎

[@mima-lx1uf]

Hi Markus. good to hear you. 😀

[@rockwelltradingservices]

Thank you! 👍

[@brendanquinn6894]

Thanks for your help marvelous Markus.

[@rockwelltradingservices]

You are welcome, Brendan. ;)

[@MP-ne6ub]

Danke Markus☺

[@rockwelltradingservices]

You are welcome! 😎

[@oliverfletcher6707]

delta is equal to N(d1) in the B-S, the probability of the stock expiring ATM or above is given by N(d2), how can this be? I always understood N(d1) as a conditional probability.

[@gordonsallee2317]

In your video of Delta In Options you use a Call/Put app which shows the Delta of each. I would like to know what that app is and is there a cost associated with acquiring same. Thank you for your considerations, and I really enjoy your videos.

[@rockwelltradingservices]

Hi Gordon. I rely on the PowerX Optimizer. Would you like to learn more about it?

[@gloriadefelix]

Please post link for PowerX Optimizer

[@stiffdrinkmime366]

The probability is determined by the market via the option price and underlying price, right? Seems like a silly question, but I just want to clarify for myself and others. I've been comparing historical IV vs realized on various stocks and trying to identify stocks that the market historically overvalues volatility. Is this part of your strategy?

[@rockwelltradingservices]

Yes, I like to sell options because typically the implied volatility is higher than the actual volatility. And when selling options, we take advantage of that.

[@cjgino311]

I notice that the delta in the PXO is usually around 0.05 less than the delta in my Think or Swim platform when I'm selling puts. Any reason for this?

[@rockwelltradingservices]

I don't know how ThinkOrSwim is calculating the delta. We are getting the data directly from the exchanges and believe that ours is correct :-)

[@tocalfa1]

Yes i found it!good

[@rockwelltradingservices]

Awesome!

[@bachmann_andreas]

Hi Markus, if Delta equals probability ITM, why does Delta and probability OTM don't add up to 100?

[@rockwelltradingservices]

Hi Andreaa, great question. The reason: It's an estimate, not an exact science. For the exact calculation, you would have to use a formula like Black and Scholes or the Binomial model. But using DELTA is a pretty good estimate and makes it much easier.

[@Markbroyo]

Does anyone know of any good textbooks that discuss everything to know about options?
Keen to get into trading.
Would like to Aquire the knowledge that you would go on to gain if completing a finance degree.
Many thanks

[@rockwelltradingservices]

I have a playlist. Here it is ruclips.net/video/XMD5kJ62D5U/видео.html

[@mima-lx1uf]

I will appreciate if you can explain what is Delta?

[@gloriadefelix]

He just explained in the video 🤦🏻 Do you mean: "What is the Delta formula?"

[@PanoTerzopoulos]

I’m trying to figure out where to get the Delta do you have an app?

[@rockwelltradingservices]

I use the PowerX Optimizer! Would you be interested to learn more? Just email [e-mail]. Look for Cristy.

[@MatchmeSydney]

Subbed 👍

[@rockwelltradingservices]

Awesome! Thank you!

[@Sifatullahsolo]

👏👏👏

[@rockwelltradingservices]

Thank you! 😊

[@ghazialmutairi7535]

👍👍👍🙏🙏🙏

[@adamjw69]

that 4% chance came through though..