Which option has the highest sensitive theoretical value. It is highest for at-the-money options and increases as expiration approaches, making it essential for managing risk and hedging effectively. Mar 16, 2022 · Using theoretical values in addition to mid point prices between the bid and ask give the trader more confidence, understanding, and a way to compare alternative trades. Options with low delta values are less sensitive to changes in the underlying asset's price. 3. Feb 15, 2024 · To determine which option has the highest sensitivity to the theoretical value in the context of options trading, we must examine the delta of each option. option 1 Option 1 has the highest delta value = highest sensitive theoretical value Click on the Bloomberg Terminal screen to examine the delta of four options on the OVME function. Aug 15, 2020 · Click on the Bloomberg Terminal screen to examine the delta of four options on the OVME function. Delta is a measure that indicates how much an option's price is expected to move for every $1 change in the price of the underlying asset. e. 3 Balanced Delta Options What is Gamma in Call Options? Gamma in call options measures how much Delta changes for every $1 move in the underlying stock. Which option has the highest sensitive theoretical value? Borrow Cost Vol Asset. They provide a more conservative approach, offering limited profit potential but also limiting potential losses. According to the given option Option (1) has a higher delta value, i. Option (1) has a higher delta value. Low delta options are suitable for risk-averse traders or those with a more defensive trading strategy. oefhenty eobmt gxi qns ccrrtrma hnfkxl olisz mvbcs vastjym bxlkyr