How to Monitor Position Delta Automatically Using Bots

Use this simple decision recipe inside a monitor automation to check an option's delta value and manage the position accordingly.
Kirk Du Plessis
Jun 16, 2021

The options Greek delta is a dynamic value. It is constantly changing as time until expiration decreases and the underlying stock’s price fluctuates. Many traders may use an option’s delta value as a consideration when opening, closing, or adjusting positions. Automation makes it easy to monitor an option’s delta throughout a position’s duration.

You can automatically manage delta values inside a monitor automation with the simple decision recipe highlighted in this tutorial. A repeater action can be added to the automation to target specific options strategy types when referencing position delta. The decision recipe pulls in the values for any specified options leg in the position, such as a call credit spread.

For example, if you sell a call spread at the 0.30 delta, the decision recipe can check if the delta has increased or decreased for any of the position’s legs. You may want to see if the short call option’s delta has increased to 0.50. You can even create a notification to alert you if the position is challenged. You can add additional recipes to adjust the position or add a close position action to exit the trade immediately if the short option is in-the-money.

An option’s delta can be a key attribute for traders to track, because it tells the continually evolving story of an underlying asset. But delta changes rapidly, and it can be nearly impossible to track the ever-changing value for many options legs and positions in a portfolio. Now you can leverage the power of bot automation to monitor, notify, and take action if a position’s delta has changed.

The options Greek delta is a dynamic value. It is constantly changing as time until expiration decreases and the underlying stock’s price fluctuates. Many traders may use an option’s delta value as a consideration when opening, closing, or adjusting positions. Automation makes it easy to monitor an option’s delta throughout a position’s duration.

You can automatically manage delta values inside a monitor automation with the simple decision recipe highlighted in this tutorial. A repeater action can be added to the automation to target specific options strategy types when referencing position delta. The decision recipe pulls in the values for any specified options leg in the position, such as a call credit spread.

For example, if you sell a call spread at the 0.30 delta, the decision recipe can check if the delta has increased or decreased for any of the position’s legs. You may want to see if the short call option’s delta has increased to 0.50. You can even create a notification to alert you if the position is challenged. You can add additional recipes to adjust the position or add a close position action to exit the trade immediately if the short option is in-the-money.

An option’s delta can be a key attribute for traders to track, because it tells the continually evolving story of an underlying asset. But delta changes rapidly, and it can be nearly impossible to track the ever-changing value for many options legs and positions in a portfolio. Now you can leverage the power of bot automation to monitor, notify, and take action if a position’s delta has changed.

Trade smarter with automation