Glossary

Beta-Weighted Delta

By Rohan Fernandes, Founder · Updated 2026-08-22 · Educational reference, not investment advice

Beta-weighted delta scales each position's delta by its stock's beta to a reference index and sums the result, expressing the whole book's directional exposure in one currency: equivalent index shares, or dollars per $1 index move.

The conversion is what makes portfolio-level delta caps meaningful: a raw-delta sum treats a utility and a high-beta chip name as equal movers, while the beta-weighted sum answers what actually happens on an index move. The full treatment, including which aggregates earn caps, is in portfolio greeks.

Related reading: Portfolio Greeks: Beta-Weighting a Book of Options · Delta (Δ) · Position Sizing for Options: Worst-Case First

Educational reference. Options Scanner is a software tool. It is not a broker-dealer, an investment adviser, or a fiduciary, and nothing on this page is investment advice or a recommendation to buy or sell any security. Options involve risk and are not suitable for every investor; read the Characteristics and Risks of Standardized Options before trading. Examples use hypothetical numbers for illustration only.