What delta is

Delta estimates how much an option's price changes when the stock price changes by one dollar.

Bought calls have positive delta and bought puts have negative delta. Selling reverses the position's delta.

Use delta as an estimate of price sensitivity, not a promise that a trade will win. Delta changes, and other pricing inputs can change at the same time. In the practice below, read the delta of two sample calls and one put on the chart.

The stock here is SOFI at $15.42. The numbers are made-up sample data. They are an example and not a recommendation.