how do options traders use delta 
delta is used by options traders in several ways first it tells them their directional risk in terms of how much an option s price will change as the underlying price changes it can also be used as a hedge ratio to become delta neutral for instance if an options trader buys 100 xyz calls each with a 0 40 delta they would sell 4 000 shares of stock to have a net delta of zero equity options contracts represent 100 shares of stock each if they instead bought 100 puts with a 0 30 delta they would buy 3 000 shares 4