If I buy a call option and I want to place a stop loss for the call option. I know at what stock price I would like to sell my stock whether it increases or decreases. But when placing the stop loss on zerodha, I have to provide the call option stop loss (not the stock price) which I don’t what should I put.
Please let me know since I am a beginner. Thanks for your help.
You need to refer delta of options.
For example: for a particular strike price ,delta is 0.4. it means if stock price moves 1 point , option price will move 0.4 or 40% . you can calculate your target or SL accordingly…
This concept is not 100% accurate… But you get a good idea of option price movement according to movement of stock price.
Thank You. Which website should I go to view the delta values ?
I have 2 ways to know delta
