The Skinny On Options Math - April 28, 2021 - Delta versus Probability of Profit

published 1 week ago by tastytrade, Inc.

It is a relatively common practice for traders to use the delta of an option when they want a quick estimate for the probability of profit.  Today, Jacob joins Tom and Tony to look into why this is close to right, what is really right, and how the Black-Scholes formula really isn’t as messy as it seems.

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