Net Options Delta
Net Options Delta is a mathematical formula that calculates the total change in call and put delta in real time.
- The Blue NOD call line will rise as calls are being bought (bullish) and fall as calls are being sold (bearish).
- The Orange NOD put line will rise as puts are being sold (bullish) and fall as puts are being bought (bearish).
- The White NOD total line will rise as more positive delta is created and fall as more overall negative delta is created.
Changes in Net Option Delta Examples:
- 50 Delta call bought and 50 Delta put bought = Total Delta is 0 (Blue line rises, Orange line falls, White line flat)
- 50 Delta call bought and 50 Delta put sold = Total Delta is +100 (Blue line rises, Orange line rises, White line rises)
- 50 Delta call sold and 50 Delta put bought = Total Delta is -100 (Blue line falls, Orange line falls, White line falls)
Net Options Delta Cheat Sheet:
- Calls Bought = Blue line moves UP
- Calls Sold = Blue line moves DOWN
- Puts Bought = Orange line moves DOWN
- Puts Sold = Orange line moves UP
- Total NOD Increase = White line moves UP
- Total NOD Decrease = White line moves DOWN