04-06-2014, 10:40 AM
(04-06-2014, 10:12 AM)Dividend Watcher Wrote: No clue, Mike. I'm only familiar with selling logic and even that is pretty limited. What's a Delta call?
If you've done it for a while, I'm sure your thoughts on it are 1000% better than mine.
80 Delta is referring to the Delta of a particular option. The higher the Delta, the more it mimics stock ownership. Stock moves 1.00 your way, an 80 Delta option moves .80. It also has little time premium priced in, so your decay is minimal. Time doesn't kill you as badly as a typical option purchase does.
Hope others have some feedback and exchange of ideas.