Options Glossary

Glossary: Delta Neutral

Last Updated: July 12, 2015


Delta Neutral

What Does Delta Neutral Mean in Options Trading?

An options trading strategy in which the effect of delta is neutralized by combining options with positive delta and options with negative delta to get a complex position that remains same in value provided there is no huge abrupt directional move. The position's delta can be also kept neutral with buying and selling a required number of underlying shares.

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