Episode 6 of 'Saxo Options Talk': unpacking the intricacies of delta Episode 6 of 'Saxo Options Talk': unpacking the intricacies of delta Episode 6 of 'Saxo Options Talk': unpacking the intricacies of delta

Episode 6 of 'Saxo Options Talk': unpacking the intricacies of delta

Options 10 minutes to read
Koen Hoorelbeke

Options Strategist

Summary:  In Episode 6 of 'Saxo Options Talk,' hosts Koen Hoorelbeke and Peter Siks unveil the multifaceted concept of 'delta' in options trading, providing traders with crucial insights to strategically position themselves in any market condition.

Introducing Episode 6 - Understanding Delta in Options trading

Join us for the sixth episode of 'Saxo Options Talk', aptly named "Understanding Delta in Options Trading." This session has Koen and Peter unpacking the concept of delta, from its basic definitions to its applications in creating sophisticated trading strategies.

Deciphering Delta's Role in Options

Delta is not just a Greek letter; in the world of options, it represents a spectrum of critical financial insights. Koen and Peter explain delta's three primary definitions and demonstrate how this key options 'Greek' is instrumental in predicting and strategizing trades.

Key Learning Points

  • Delta's Definitions and Implications: Grasp delta's role in estimating the likelihood of options expiring in the money, the sensitivity of an option's price to the underlying asset, and its use in delta-neutral trading.
  • Strategic Strike Selection: Dive into the decision-making process behind selecting strikes for your options based on delta values, and how to align this with your market outlook.

Strategic and Selection Insights:

  • Balancing Risk and Potential: Learn to balance the weight of probability against the premium received by examining delta values.
  • Premium Strategies: Understand why selling premium may be advantageous in certain market scenarios and how the concept of 'the house always wins' applies to time decay and premium selling.

Advanced Insights:

  • Volatility and Time Factors: Discuss the critical impact of volatility and time to maturity on delta, and how these factors can significantly influence your options strategy.

Practical Considerations:

  • The Power of Theta Decay: Explore how theta decay plays into delta-based strategies and the importance of time in managing profitable trades.
  • Risk Management: Learn to calculate and manage the maximum profit and loss potential of your positions and find the optimal balance in your trading approach.

Who Should Listen?

Whether you're new to options or an experienced trader, Episode 6 is designed to deepen your understanding of how deltas can inform your trading decisions and strategy development.

Subscribe and stay ahead

Ensure you don't miss this insightful episode by subscribing to 'Saxo Options Talk' on Podbean, or on Spotify. Keep yourself updated with the latest strategies and discussions in options trading.

Join the discussion

After tuning in, join me on my Threads profile to share your thoughts and insights on the episode. It's an excellent platform for engaging with fellow traders and enhancing our collective understanding of options strategies.

Your questions, our answers

We're eager to hear from you! Send your options-related questions to optionquestions@saxobank.com. Selected questions will be addressed in future episodes, providing customized advice and insights.


'Understanding Delta in Options Trading' in Episode 6 of 'Saxo Options Talk' is an indispensable resource for traders seeking to harness the power of delta in their trading strategies. With Koen and Peter's expert breakdown, you're set to apply these concepts to optimize your options trading. Listen in, participate, and enhance your trading acumen with us!

Feedback? Ideas? Suggestions? Let us know.

Previous podcasts:

Previous Volatility Reports: 

Related articles:

Previous "What are your options" articles: 

Previous "Investing with options" articles: 


Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website.

This article may or may not have been enriched with the support of advanced AI technology, including OpenAI's ChatGPT and/or other similar platforms. The initial setup, research and final proofing are done by the author.


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992