Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Can the Delta be used to calculate the option premium given a certain target?
In a simple world yes, but not in the real world. Option pricing isn't that simplistic in real life. Generally option pricing uses a Monte Carlo simulation of the Black Scholes formula/binomial and then plot them nomally to decide the optimum price of the option. Primarily multiple scenarios are generated and under that specific scenario the option is priced and then a price is derived for the option in real life, using the prices which were predicted in the scenarios.  So you don't generate a single price for an option, because you have to look into the future to see how the price of the option would behave, under the real elements of the market. So what you price is an assumption that this is the most likely value under my scenarios, which I predicted into the future. Because of the market, if you price an option higher/lower than another competitor you introduce an option for arbitrage by others. So you try to be as close to the real value of the option, which your competitor also does. The more closer your option value is to the real price the better it is for all. Did you try the book from Hull ? EDIT: While pricing you generally take variables which would affect the price of your option. The more variables you take(more nearer you are to the real situation) the more realistic your price will be and you would converge on the real price faster. So simple formula is an option, but the deviations maybe large from the real value. And you would end up loosing money, most of the time. So the complicated formula is there for getting a more accurate price, not to confuse people. You can use your formula, but there will be odds stacked against you to loose money, from the onset, because you didn't consider the variables which might/would affect the price of your option.