bingbingliang

I check CFA text, I 'm with CFA text opinion, Stock up, call up, delta >0 and increase, but short call has negative value

CPATrader

that's correct.

stalkey

as far as i have read....call deltas are positive that is frm 0 to 1 as d stock price increases and put deltas are negative that is frm -1 to 0 as the stock price increases cause call deltas are positively related to stock price..and put deltas are negatively related to stock price..

as far as gamma goes...long calls n long puts have positive gammas and short calls n puts will have negative gammas...

redskins44

sgkhade07 Wrote:
-------------------------------------------------------
> as far as i have read....call deltas are positive
> that is frm 0 to 1 as d stock price increases and
> put deltas are negative that is frm -1 to 0 as the
> stock price increases cause call deltas are
> positively related to stock price..and put deltas
> are negatively related to stock price..
>
> as far as gamma goes...long calls n long puts have
> positive gammas and short calls n puts will have
> negative gammas...

Yes. Delta will be >0 for calls and <0 for puts. If you sold a call, you are short, Delta doesn't reverse itself. Delta will still be positive. As Delta approaches 1 the option is getting further and further into the money and becoming more valuable to the call holder but, the investor who wrote the call option is at a loss.

sameeragarwal

If your position is a a short call, the delta on that position will be negative.