Key bindings Option+Delete not working as expected in iTerm2

On my previous MacBook I had a keybinding in iTerm2 which would delete a word when I press Option + Delete. Unfortunately I don't have access to my previous MacBook any more to see how it was done. When I have a string like something and the cursor is at the end it would delete the whole word (expected behavior). When the string is /etc/nginx/nginx.conf it would delete nginx.conf leaving only /etc/nginx/ (which is also expected). Unfortunately the best thing that gets even close to this behavior is adding a custom binding in iTerm2 to send Option + Delete and send Hex key 0x17. This will however always delete the whole string /etc/nginx/nginx.conf and not just nginx.conf from it. I tried many conbinations with .inputrc, which at the end I couldn't make work, but even if I did it would have worked only in the local shell. Logging in to a remote server via SSH would still have the same behavior (delete the whole word). The behavior I am describing works well without any additional settings in Notes where slashes seem to be a word separator. When I navigate to General -> Selection I removed the / from the Characters considered part of a word but this didn't change anything.