First article | Delta: First, let's see clearly whether you are betting on a rise or a fall Brothers, the first thing to look at in an options account is not the yield or how many times this contract can be multiplied, but Delta. Delta can be simply understood as: how much the option price theoretically changes for every $1 change in the underlying price. For example, if the Delta of a Call is 0.50 and the underlying asset rises by $1, the option price will increase by approximately $0.50. A US stock option usually corresponds to 100 shares, so when converted, the directional exposure of a contract is approximately 50 shares. That's also why many people only buy one option, but their account volatility is much greater than holding stocks. What you are buying is not a receipt, but a directional risk amplified by a contract multiplier. Generally speaking, buying Call is a positive Delta and buying Put is a negative Delta; After selling, the symbol is reversed. The closer Delta is to 1 or -1, the more sensitive the option price is to changes in the underlying asset, and the closer the position performance is to the stock. The closer it is to 0, the smaller the exposure in the current direction, but it does not mean that the risk is low, as Delta will constantly change with price, time, and volatility. The most common misconception is to directly consider Delta as the probability of profit upon maturity. For example, if Delta is 0.30, there is a 30% chance of making money. This statement can only be used as a very rough reference, as the actual results will also be affected by implied volatility, remaining maturity, buying price, and holding costs. Delta is primarily about risk sensitivity, not an accurate win rate calculator. What should really be considered in the actual market is the net Delta. Assuming you hold stocks, calls, and puts simultaneously, you need to consolidate all positions and calculate whether the overall account is bullish or bearish. Many people claim to have done hedging, but in reality, the net Delta is still high. Once the market reverses, the account will still withdraw significantly. When I look at my options position myself, I first ask three questions: How much profit or loss would I make for every $1 fluctuation in the underlying asset? Is this risk beyond one's tolerance? If the market continues to rise, will Gamma cause Delta to rapidly amplify? First, clarify the direction of exposure before discussing profit margins. Otherwise, buying many options with different names may appear scattered, but in reality, they may all be in the same direction.