 Happy Thursday trade hackers. Welcome to today's update. Today is April 16th starting with the trade hacker question of the day brought to us by our favorite member straight out of Prague. How is an options Delta calculated? So when we talk about Delta in relationship to options, it can be used a couple different ways. One of the ways we use it is to gauge our overall directional bias of our portfolio or our directional bias of a specific position. In this case, we're talking about Delta's as a probability measure. So if you pull up an option chain and we're looking at SPY, we're looking at the options with 32 days to expiration. And if you take a look at the Delta's, so you'll notice that the obviously the shaded gray that's in the money and the further in the money those options go the higher that Delta number until essentially you get close to 100 or 1 of Delta. And essentially that's the movement of that option will act just like an individual stock. So if you buy a 100 Delta call, so that'd be about the 155, then that's going to behave from a P&L standpoint pretty close to as if you bought the individual stock. And then as you get closer and closer to the current price, so the price is currently at about 278, so the at the money strike would be the 278, and you can see that's right around the 50 Delta. And so that there's about a 50% chance that this is going to expire in the money, and there's about a 50% chance it'll expire out of the money. So that's essentially how these Delta's are calculated. You look at the at the money, and that's going to be the 50 Delta, and the further you go out of the money, the lower they get, the further you go in the money, the higher they get. And so if you look at, for example, the 40 Delta, so if you were to buy a or if you were to buy or sell a 286 call, there's about a 40% chance that at expiration it's going to end up in the money, which means there's a 60% chance that it'll end up out of the money. So that's how you can use Delta. And so that's how those calculations are based. Now, if you want to get real deep into the calculations, if you go to the trade tab here, actually, what we're going to do is go to the analyze tab. And what you'll see here is there's a there's a tab here a drop down in thinkorswim and the actual option pricing model. So there are a few different ones. There's one called the something that's the default and toss that I'm not even going to try to pronounce, but it's this one here. There's the binomial and then the most popular one is the black shoals. And so this is the formula, the algorithm, the calculation of how options are priced. And that's what is kind of giving these different representations of data on the platform. But from a practical use standpoint, the way that these are calculated is simply looking at the at the money. That's the 50 Delta and then going up on in the money down on the out of the money. The other kind of a quick hack when it comes to Delta is Delta is also used to determine the expected move, right 32 days to expiration. You can see there's about a 26 and a half move to the upside 26 and a half move to the downside. That's the expected range within this option cycle. And so one quick way to look at that is if you buy an at the money straddle. So if we take the 50 Delta and we buy a straddle, obviously that's going to be the price of the calls plus the price of the puts. And so that is about 2346 and that's going to give you approximately the expected move. Now, as you can see, that's a few bucks off, but that's going to give you approximately the expected range, the at the money straddle is kind of a quick way to do that. So hopefully that helps in kind of clarifying some Delta related questions. Let's jump into the charts and check out what's happening today starting with S&Ps. S&Ps pretty flat. I mean, it's been a pretty choppy day up three points, dows down 73, NASDAQ up 90, Russell down 20. So very mixed bag. If we go to the intraday chart and just look at a five minute chart, you can see it was pretty back and forth. The movie came out of the gate. Looks like we are going to tank. If I get my chart back up, came out of the gate, looked like we were going to tank for the day and then rallied hard back above to a positive Terry, then fell off and then we've been rallying a little bit later in the day. So pretty crazy moves in the market. So decent, decent range, but ending up pretty flat oils down a couple percent. Gold pretty flat bonds down about a half percent and they've been pretty much there the whole day. Haven't moved too much. So pretty mixed bag. If we look at some of the stocks, I mean, the one that really stands out is Roku and I told you there'd be some funky stuff going on around earnings, but Roku, they just couldn't help themselves to come out and release some information. You know, it's the whole streaming war going on, Netflix, Apple Plus, Disney Plus, you've got a new one called Quibi, which is kind of 10 minute little sound bites that's coming out. And so Quibi came out and announced how many downloads they had the first week, then Disney said, well, we can't be outdone. So they came out and said we had 50 million, which is hundreds of times the amount of Quibi did. And then Roku came out and said, yeah, well, we are about 64% of devices streaming have some type of Roku, whether it's a smart TV or device or whatever. And so their numbers are just are popping off. And so you see, they're up over 12% today. They've got a couple weeks before they even announced earnings. So that's the big mover in video is also up 4%. Everything else is kind of a mixed bag. Some red, some green, definitely nothing decisive airlines getting hit Delta down 6%. So that is what's going on. What did we do today? We added a our weekly double calendar in SPX. So got some more juice going there, made a couple of adjustments. And just again, kind of a light week as far as new positions, new trades, but just letting our current positions work for us as this market bounces around. I still want to start layering in some ducks if we get to significant down move, but just would like to see that a little bit first. If we don't get it, then we'll just have to reevaluate. But that's the plan. Everybody have a good evening. Talk to you tomorrow.