How to interpret Greek Delta for Options? First, I google. Pretty much anywhere i search, I stumble upon the same definition "Delta is the amount an option price is expected to move based on a $1 change in the underlying stock." (from here)
Okay, let's proof test this. I'll take two stocks Google and Microsoft and choose the closest In The Money options (apples to apples).
Take a Call option for Microsoft EXP: 07/17/20. Strike 205. Delta is 0.5677
Compare with a Call option for Google EXP: 07/17/20. Strike 1465. Delta is 0.5098
So what??? Based on the definition, a $1 increase in Google or Microsoft stock will result in $50 increase in these options??? Really??? Google stock is like 10 times more expensive than Microsoft. $1 increase for Google stock is insignificant like a mosquito sting.
Anywhhooooo..... how is it even possible, i look up any other stock with the first available In The Money options, and Delta always around 0.5??? For ANY stock a $1 increase results in $50 increase the First available In The Money Call Options? Doesn't make sense.