How to calculate stock option delta
So, if you bought a put option, your delta would be negative and the value of the option will decrease if the stock price increases. However, when you sell an option the opposite happens. For example, if you are short a call option at $1.25 and the price of the option rises to $1.50 then your position is now worse off by -$0.25. I'm trying to calculate some things by hand (well, by computer) just so I have a thorough understanding of how they interact. I'd like to have a spreadsheet that tells me what an option price WOULD BE (not taking volatility into account which is a different can 'o worms) AFTER an expected move was made in the underlying stock.