Discovertastylive: From Theory to PracticeUsing Delta as a Measure of Directional Bias
Using Delta as a Measure of Directional Bias

Using Delta as a Measure of Directional Bias

Update: 2025-10-03
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In today's From Theory to Practice, Dr. Jim continues his deep dive into delta, with a look at using Delta as a measure of directional bias. Arguably, using Delta in this way, either at the individual position level or the overall portfolio level, is the most common way that active traders use Delta. This is likely because Delta can help quickly gauge the approximate directional bias of an individual position or total portfolio at a glance.
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Using Delta as a Measure of Directional Bias

Using Delta as a Measure of Directional Bias

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