Delta neutral is a trading strategy that aims to reduce or eliminate the directional risk associated with price movements in an underlying asset. In the context of options and derivatives, "delta" measures the sensitivity of an option's price to changes in the price of the underlying asset. Specifically, it represents the expected change in the option's price for a $1 change in the price of the underlying asset. When a portfolio is delta neutral, the total delta of the position is zero.
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