Delta in options trading refers to the rate of change in an option’s price for each one-point increase in the price of the underlying asset. In other words, it shows how much the price of an option is likely to move for every rupee change in the underlying asset price.

For instance, if the delta of an option is 0.5, this implies that for each ₹1 move in the underlying asset’s price, the option’s price will theoretically change by 50 paise. If the delta is positive, the option price will increase if the underlying asset’s price increases and decrease if the underlying asset’s price decreases.

It’s also worth noting that the delta of call options is always between 0 and 1, while the delta for put options is between 0 and -1. The closer an option’s delta is to 1 or -1, the more the price of the option responds to changes in the price of the underlying asset.

Remember, the delta changes as the price of the underlying asset changes, making it a dynamic number that traders need to monitor regularly. This is particularly essential for traders who practice delta hedging, a strategy that involves adjusting the number of options held to maintain a delta-neutral position.