what does delta mean in trading 
delta is a measurement of how much the price of an option is likely to go up or down based on the price of the underlying security it s gauged by each 1 change an option s price should increase by 0 15 for each dollar change in the security s price if the delta is 0 15 5the bottom linetime value is the portion of an option s premium that s affected by the amount of time remaining until an option contract expires it s composed of extrinsic and intrinsic values and can be calculated by a relatively simple math equation investors are typically willing to pay more for more time because time gives an asset a sufficient lifespan to manage a profitable move less time often means less money for the seller 