The word delta comes from the fourth letter of the Greek alphabet and is universally abbreviated as a triangle. As it relates to options, delta is really very simple. Specifically, it is the amount that an option will theoretically change in price for a one-point move in the stock. Whether deposits are made monthly, quarterly or yearly, it is typical that funds are invested as they are saved. As an added benefit, risk is substantially less than if the total three-year sum was invested all at once.
All positions are subject to risk and, therefore, potential losses.
Professional traders address these concerns by engaging the continuous process of risk management. The first step in this process is to understand the risks associated with a specific position. Risk variables are then identified and strategies are selected to alleviate potential losses.