Option Delta displays the net delta from options trading activity on a subgraph below your chart. It helps you understand the directional pressure coming from the options market - whether call or put activity is dominating - and can be used to estimate the hedging pressure that market makers may be applying to the futures market.

Note: Option Delta is available on SPX only.

How to Add Option Delta

1. Go to New in the top menu

2. Click on Option Chart

   

3. A Select Instrument dialog will appear. Since Option Delta requires CBOE data, select SPX - Symbol: ES-CME, Exchange: CME
   
   

   

4.  Click to open the chart

5. Once the Option Chart is loaded, click the Indicator Add button on the chart toolbar

6. Search for Option Delta and click + to add it

7. Click the settings icon to open the configuration window

   

Understanding Key Terms

Before adjusting the settings, it helps to understand a few core options concepts:

• Call - An option that gives the buyer the right to buy the underlying at a set price. Traders buy calls when they expect price to go up

• Put - An option that gives the buyer the right to sell the underlying at a set price. Traders buy puts when they expect price to go down

• Delta - A measure of how much an option's price is expected to move relative to a one point move in the underlying. In this context, delta is used to represent the directional exposure created by options trading activity

• Premium - The total dollar value paid for the option contract, calculated as the contract price multiplied by volume

• DTE (Days to Expiration) - The number of days remaining before the option contract expires. A DTE of 0 means the option expires the same day

Settings

Parameters

General

• Expiration - Filter delta by expiration. Options available: 0 DTE, <= 1d, <= 2d, <= 3d, <= 4d, <= 5d, <= 6d, <= 7d, <= 31d, <= 91d, All expirations. Default is All expirations

• Value - Choose how the delta is measured. Options available:

  • Contracts (default) - displays the number of option contracts.
    Use this when: you want a simple count of directional exposure, regardless of price

  • Premium - displays the total premium value in USD.
    Use this when: you want to weigh delta by dollar value, since a small number of expensive contracts can matter more than a large number of cheap ones

  • Future contracts - displays the equivalent number of futures contracts.
    Use this when: you want to compare options delta directly against futures positioning on the same chart

    

Plot Settings

• Option type - Choose which side of the market to display. Options available:

  • Cumulative (default) - displays the net delta combining both call and put activity (call delta minus put delta).
    Use this when: you want a single net read on overall options market direction, rather than looking at calls and puts separately

  • Call - displays delta from call options only.
    Use this when: you want to isolate call side activity specifically, without put side flow affecting the picture

  • Put - displays delta from put options only.
    Use this when: you want to isolate put side activity specifically, without call side flow affecting the picture

• Revert - By default, Option Delta shows the delta from the customer's perspective. When Revert is enabled, the delta values are inverted to show the estimated market maker's perspective, since market makers are typically on the opposite side of every trade.

  • Default (disabled) - shows delta from the customer's side.

    

    Use this when: you want to see what the overall market is doing, whether participants are buying calls or puts and in which direction the flow is leaning

  • When enabled - inverts the delta to estimate market maker exposure. Since market makers hedge their exposure, a large positive delta on the customer side means the market maker is likely short delta and will need to buy futures to hedge.

    

    Use this when: you want to understand the hedging pressure market makers may be applying to the futures market

• Cumulative - By default, Option Delta plots bar by bar values showing the delta for each individual candle. When Cumulative is enabled, the delta is plotted as a running total across the session, similar to CVD but for options delta.

  • Default (disabled) - shows delta value for each individual bar.

    

    Use this when: you want to see real time bar by bar options activity and spot sudden spikes in delta that may coincide with key price moves

  • When enabled - shows a running cumulative total across the session. A steadily rising cumulative delta suggests sustained call buying pressure, while a falling cumulative delta suggests sustained put buying pressure.

    

    Use this when: you want to see whether options delta is consistently building in one direction over time

Using Both Together

• Both disabled - gives you a clean bar by bar view of customer delta.

  

  Use this when: you want to spot immediate spikes in options activity as they happen

• Both enabled - gives you a cumulative running total of estimated market maker delta.

  

  Use this when: you want to track whether market makers are building hedging pressure in one direction throughout the session, which can give you an early indication of potential futures flow

Subgraphs

Delta (1)

• Color - Set the primary color. Default is green

• 2° Color - Set the secondary color. Default is purple

• Subgraph Style - Default is Bars

• Auto Color - Options: None, Slope, +/-. Default is +/-

• Line Style - Choose between Solid or Dash. Default is Solid

• Line Width - Default is 5

• Short Name - Set a custom label for this series

• Name Label - Toggle visibility of the name label

• Value Label - Toggle visibility of the value label

• Name Background - Toggle the name label background

• Value Background - Toggle the value label background

• Chart color for marker - Enable to use chart color for markers

• Include on Auto Center - Enable to include this series in auto centering. Default is enabled

  

Example - How to Use Option Delta

Option Delta helps you understand the directional pressure coming from the options market and estimate the hedging activity of market makers. Here are some practical ways to use it:

Reading the Bars

• Positive bars = More call side delta - bullish pressure

• Negative bars = More put side delta - bearish pressure

• The taller the bar, the stronger the directional pressure

Practical Uses

Using Default View (Revert off, Cumulative off)

• Read bar by bar to spot immediate spikes in options delta

• A sudden positive spike suggests aggressive call buying at that moment

• A sudden negative spike suggests aggressive put buying at that moment

  

Using Cumulative (Revert off, Cumulative on)

• Works like a CVD but for options delta

• A steadily rising cumulative line suggests sustained bullish options pressure building throughout the session

• A steadily falling cumulative line suggests sustained bearish options pressure

• Use this to confirm whether the options market is consistently leaning in one direction

  

Using Revert (Revert on, Cumulative off)

• Flips the delta to show estimated market maker perspective

• Since market makers are on the opposite side of most trades, this shows you the estimated hedging pressure they are applying to the futures market

• Use this to anticipate potential futures flow from dealer hedging

  

Using Both Together (Revert on, Cumulative on)

• The most powerful combination

• Shows you the cumulative estimated market maker delta throughout the session

• Helps you track whether market makers are consistently building hedging pressure in one direction which can give you an early indication of potential futures flow

  

Note: Option Delta works best in confluence with your GEX levels, heatmap and footprint. Never use it as a standalone signal.

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